The Big Shift: An Analysis of the Local Cost of Federal Cuts
This report examines how recent federal spending cuts and policy changes are shifting costs onto county governments, potentially burdening local budgets and services.
Published on July 9, 2025, the report outlines how shifts like reduced SNAP cost-sharing, the loss of federal incentives for Medicaid expansion, and cuts to key programs—including CDBG, HOME, EDA, USDA rural development, and FEMA’s BRIC—will force counties to fill significant funding gaps.
It estimates an aggregate downstream impact approaching $1 trillion over the next decade, highlighting counties’ limited flexibility amid mandate-driven responsibilities and capped revenues. The report details the increased administrative costs (e.g., hundreds of millions in SNAP and Medicaid obligations), reduced intergovernmental transfers, and heightened demand for services amid shrinking support.
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