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Kemp tells state agencies to hold the line amid possible federal cuts

Last updated: July 15, 2025 3:49 pm
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Kemp tells state agencies to hold the line amid possible federal cuts
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(The Center Square) – Georgia Gov. Brian Kemp is telling state agencies to keep spending at its current level and consider possible federal cuts when looking at next year’s budget.

The governor’s request is outlined in a memo to agencies from Richard Dunn, director of the Office of Planning and Budget.

“If your agency has nonmandatory growth needs or specific onetime initiatives that will require funding either this year or in FY 2027, agencies may submit budget requests to redirect funding from within the existing budget to meet those needs,” Dunn said in a memo. “Such requests should not increase your agency’s discretionary workload, increase the scope of existing services, or create outyear needs that cannot be funded within your existing budget.”

Dunn also told agencies to include federal cuts in their budget and prepare for future ones.

“We are asking that all agencies internally prepare thoughtful plans for a state funds holdback contingency as we continue to monitor economic trends and policy changes at the national level,” the memo said.

The U.S. Department of Education is withholding more than $201 million in funding from the Georgia Department of Education that would be applied to initiatives such as migrant education and after-school programs. State School Superintendent Richard Woods has called for the release of the funds.

“I deeply believe in fiscal responsibility, which means evaluating the use of funds and seeking out efficiencies, but also means being responsible, releasing funds already approved by Congress and signed by President Trump,” Woods said last week. “In Georgia, we’re getting ready to start the school year, so I call on federal funds to be released so we can ensure the success of our students.”

Agencies have until Sept. 5 to submit their budgets, according to the memo.

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