Gov. Kemp warns of tight budgets as Georgia braces for federal cuts
ATLANTA - Gov. Brian Kemp is warning state agencies to prepare for tighter budgets as Georgia braces for the potential fallout from steep federal spending cuts included in President Donald Trump’s budget plan.
What we know:
In a memo sent last week by the state budget office, Director Richard Dunn advised agency heads that the Amended Fiscal Year 2026 and Fiscal Year 2027 budgets will likely not include any new spending increases. The memo makes it clear that if federal funding is reduced, the state does not plan to fill in the gaps—except for enrollment-based programs such as K-12 education and health care services.
Trump’s federal budget includes approximately $1.5 trillion in cuts aimed at offsetting the cost of a $4 trillion tax cut package. Democrats have criticized the plan, arguing the tax cuts disproportionately benefit the wealthy and that the spending reductions could significantly impact essential state-level programs, including education and health care.
What they're saying:
While Georgia closed out Fiscal Year 2025 with a healthy budget surplus, the full impact of the proposed federal cuts remains uncertain. Some Democratic lawmakers have urged Kemp to call a special legislative session to consider state-level funding solutions to potential shortfalls, but the governor has shown no sign of doing so before the regular 2026 session begins in January.
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What's next:
The state entered Fiscal Year 2026 on July 1 with a $37.7 billion budget. Agency heads are required to submit their mid-year FY 2026 and full FY 2027 budget requests by Sept. 5.