ATLANTA — As debate over federal spending intensifies in Washington, Georgia officials are closing monitoring the potential impacts on state-funded programs.
A new directive from the Governor’s Office of Planning and Budget urges all state agencies to assess their financial stability and prepare for the possibility of reduced federal support. The memo, obtained by WSB, instructs agencies to report any loss of federal grant funding and begin developing contingency plans.
“While Georgia remains in a strong fiscal position and continues to experience economic growth, we are closely monitoring economic trends and policy changes in Washington,” the memo states. It further advises agencies to “internally prepare thoughtful plans for a state funds holdback.”
The warning comes as the U.S. Senate prepares to debate a bill that could cancel approximately $9 billion in previously approved federal funding, much of it reportedly directed toward foreign aid. However, uncertainty remains over how broader cuts might trickle down and impact local programs.
Governor Brian Kemp has so far declined calls from Democratic lawmakers to convene a special legislative session to address potential funding shortfalls. His office maintains that while the state is tracking developments in Washington, there are currently no plans for emergency legislative action.
State leaders say they will continue to evaluate the situation as federal budget negotiations unfold.
WSB’s Jonathan O’Brien contributed to this story