GREENFIELD — In the wake of federal funding cuts, Community Action Pioneer Valley’s plan to renovate the site of the former Barn Grocery Store at 95 River St. and convert it into an all-in-one service center and food pantry now faces significant hurdles.

The social services agency purchased the 10,000-square-foot grocery store following its closure in 2020. While Associate Director of Operations Laura LaBounty said Community Action Pioneer Valley is hopeful that Congress will maintain funding, President Donald Trump’s proposed fiscal year 2026 budget could eliminate an estimated $8.3 million for the local agency, between $7 million in federal fuel assistance through the Low Income Home Energy Assistance Program (LIHEAP), $700,000 in Community Services Block Grant funding and $600,000 in Community Development Block Grant funding.

With that in mind, the River Street project has hit a funding roadblock, as Community Action Pioneer Valley must use its budget to prioritize continuation of existing programs.

“It’s been a frustrating process because we want to see it happen. We want to be able to care for people in a more effective and efficient way,” Community Action Pioneer Valley’s Associate Director of Community Engagement Jess Thompson said. “We have shifted from designing the fundraising that we do with an eye toward River Street, and really thinking about a fund for stability and hoping that with dollars raised, we will be able to continue at least some of the services that we have provided for years and years and years. It’s a really difficult time for lots of not-for-profit organizations, as they look toward what Congress is going to do with the president’s recommendations.”

LaBounty outlined in an email that the redevelopment effort has raised a total of $1.8 million, including a $500,000 state budget earmark to buy the property, a $1 million grant from the USDA for the development of a food pantry at the site, and $300,000 of Community Action Pioneer Valley’s funds to pay for the architectural design and preliminary site testing. The entire project is estimated at $6 million.

Thompson explained her organization’s goal is to use the dilapidated property to consolidate all of its various programs into one site in Greenfield that would also operate as a food pantry.

“The dream of the River Street building is that we would be able to bring our frontline service programs to a ‘one-stop shop,’ so people who needed help would also be able to talk to someone about their fuel assistance. They would also be able to access [the Special Supplemental Nutrition Program for Women, Infants and Children] and would also be able to access our Money Matters program — all of those frontline resources we hope to put in one building,” Thompson said. “We’d be able to take care of people or help them get the services that they need with so much more ease.”

According to Community Action Pioneer Valley Executive Director Clare Higgins, the River Street property is fenced off to prevent illegal dumping on the site. Thompson said the former grocery store is currently a “shell of a building” and is in need of significant repairs, including a new roof, heating and cooling systems, and flooring.

Thompson added that despite bleak financial circumstances, there is “still hope” for the project. The organization is working with state legislators to discuss funding opportunities while also applying for additional grants.

“We applied for a Congressionally Directed Spending Request (earmark) from Sen. [Elizabeth] Warren, we have submitted a new application for MassDevelopment’s Underutilized Properties Program, and we are pursuing a bank loan and the possibility of New Market Tax Credits. We will fundraise to secure the remainder of the necessary funds,” LaBounty wrote in an email. “[We] hope to hear good news in the fall.”

Anthony Cammalleri can be reached at acammalleri@recorder.com or 413-930-4429.