NewBo City Market expansion in Cedar Rapids on hold after pause in federal funding

CEDAR RAPIDS — The expansion of NewBo City Market is on hold after a portion of the project’s funding was paused by “recent executive orders” issued by President Donald Trump’s administration.

The market’s leaders announced the delay Tuesday.

“We deeply appreciate the patience and support of our community as we work through this delay,” Julie Parisi, NewBo City Market executive director, said in a news release. “Our priority remains the completion of this project, and we are doing everything in our power to move forward while taking into account the health of the fledgling businesses in our incubator.”

The market, which opened in 2012, offers space for small business owners to get a start and thrive with support from grants and mentors.

The project will create more shopkeeper spaces at NewBo City Market, while also adding a mezzanine, an indoor performance stage, and a grocery store for the neighborhood.

A fundraising campaign — called Next Level Local — was launched in May 2024 with a goal of raising $5.5 million. To date, it has raised about $3.7 million.

The largest contribution is a $1.3 million award from the U.S. Economic Development Administration, announced in September by U.S. Sen. Chuck Grassley. The grant is to be administered by the U.S. Department of Commerce.

Last month, Trump’s administration announced a pause on federal aid, including funding to nonprofits, schools and businesses. The Associated Press reported administration officials said the pause was intended to give the government time to determine whether spending aligns with Trump’s executive orders.

The administration rescinded the memo, and a federal judge issued a preliminary injunction to block the pause. That same judge agreed Tuesday to continue blocking the pause, according to AP.

Construction of the NewBo Market expansion was scheduled to begin early this year, with completion to come in fall 2025.

“We are actively working with federal officials to resolve the situation,” the market’s news release states.

Due to the timing of the delay — spring and summer are a busy time for events and business at NewBo Market — the organization’s board of directors voted to delay the start of construction to Sept. 1, the release states.

NewBo Market is continuing its fundraising campaign. Those interested in donating to the cause can find information online at newbocitymarket.org/nextlevel.