BILLINGS – A $1 million federal grant intended to plant trees in some of Billings’ most underserved neighborhoods has been rescinded by the U.S. Department of Agriculture, sparking frustration and questions from former city staff.
The money, awarded to the city through the Inflation Reduction Act, was designated for planting and maintaining trees in areas lacking adequate canopy coverage—locations identified through federal mapping as historically disadvantaged.
But in late April, the USDA terminated the grant, citing its connection to diversity, equity and inclusion (DEI) initiatives, now at odds with priorities of the current Trump administration.
Watch the full video below:
“This grant was going to help people who probably could have used a little bit of help,” said Gayle Lam.
Lam was hired to implement the program for the city of Billings, but as of now, has lost her job.
Longtime city forester Steve McConnell, who applied for the grant on behalf of the city’s Parks and Recreation Department, said the potential impact was enormous.
“We envisioned having a sea of trees from City Hall to Metra,” McConnell said. “The public was never really informed that we got this grant. There was never any excitement built around it.”
McConnell, who served as city forester from 2017 until May 2024, said the delay in implementation began well before the grant was terminated.
While funding had already been approved and allocated by Congress, he said city leadership stalled efforts and prevented projects from launching during his final year in office.
City officials said they are appealing the decision of the Trump administration.
“The City is exploring options to appeal the decision to terminate this grant. The importance of this grant cannot be overstated. It truly benefits so many in our community," Gavin Woltjer, director of Parks, Recreation and Public Lands, said in an email to MTN News
The USDA’s termination letter, which is dated April 22, 2025, states that the grant violated federal civil rights laws due to its alignment with DEI programs, which the agency now considers discriminatory under its interpretation of federal law.
The grant—formally titled the “Urban Forestry Grant for Disadvantaged Areas”—had already delivered more than $24,000 to the city.
Under the terms of the termination, no more money will be disbursed beyond allowable costs incurred before the notice.
Lam, who had begun community outreach and inventory work, said the grant would have brought far-reaching benefits to Billings, including job creation, lower utility costs, and neighborhood improvements tied to safety and well-being.
“There are people out walking because of trees. It’s making our city better,” Lam said.
McConnell said targeted neighborhoods like the Billings Industrial Revitalization District (BIRD) and Terry Avenue would have benefited from additional shade, stormwater retention and boulevard tree maintenance.
“Boulevard trees have been known to slow traffic, reduce crime and increase people’s sense of well-being,” he said.
The grant termination comes at a time when the city is facing significant budget shortfalls.
Recent legislative changes will likely reduce the city’s revenue, leaving McConnell to question why local leaders have not raised concerns about the lost grant or attempted to appeal the decision.
“This is a lot of money, and $1 million is not irrelevant,” he said.
According to USDA guidelines, the city does have the option to pursue alternative dispute resolution or file a formal appeal to the deputy chief of State, Private and Tribal Forestry. But so far, it’s unclear whether city officials plan to challenge the decision.
Lam remains hopeful.
“I am still hoping we can convince the powers that be that we would like to have it back,” she said.
