How does Georgia benefit from key federal programs & funding?
Shifting federal policies and budget priorities could have a profound impact on Georgia’s economy, financial security, and access to essential services. Dramatic reductions to key federal programs and departmental staff reductions targeting employment, social services, and small business funding are likely to negatively impact Georgia as a whole as well as areas of the state already facing economic hardship.
Potential reductions in Social Security, healthcare funding, and veterans’ benefits may put strain on seniors, low-income families, and those relying on safety net programs. Changes in education funding, small business support, and infrastructure investment could limit economic opportunities, affecting workforce development, entrepreneurship, and community growth. Cuts to agriculture and food assistance programs threaten rural economies and food security, while reductions in defense, disaster relief, and housing funds could weaken key economic clusters/industries, disaster preparedness, and affordable housing efforts.
At a state-level, Georgia has received more than $1.2 Trillion of federal obligations (which includes federal contracts, grants, direct payments, loans, and other payment types) from 2008 – 2025. What do these federal obligations enable for Georgians? Just to name a few…the Social Security Administration provides benefits to retirees and disabled individuals, ensuring financial stability for many residents. The Department of Health and Human Services funds Medicaid and public health programs, which are essential for accessible healthcare. The Department of Agriculture supports food assistance programs like SNAP, aiding families in need with food security. The Department of Transportation finances infrastructure projects, improving roads and public transit systems. However, recent federal funding freezes have raised concerns about the continuity of these vital services. For example, Atlanta Mayor Andre Dickens has urged the administration to restore funding to prevent disruptions in affordable housing and public safety initiatives.
From 2008 – 2025, Georgian’s benefited from many federal programs and budgetary priorities. The top ten awarding agencies include:
| Awarding Agency | Obligation |
| Social Security Administration (SSA) | $ 499,863,053,437 |
| Department of Health and Human Services (HHS) | $ 209,594,007,701 |
| Department of Defense (DOD) | $ 121,531,533,090 |
| Department of Homeland Security (DHS) | $ 96,147,054,982 |
| Department of Agriculture (USDA) | $ 69,574,282,449 |
| Department of Veterans Affairs (VA) | $ 68,850,570,222 |
| Department of Education (ED) | $ 53,541,484,898 |
| Small Business Administration (SBA) | $ 30,019,810,148 |
| Department of Transportation (DOT) | $ 24,089,933,260 |
| Department of Housing and Urban Development (HUD) | $ 15,358,958,074 |
How might these shifts destabilize nonprofits and community development financing?
Without question, dramatic cuts to federal spending and federal agency downsizing will result in reduced social service programs that many Georgians rely on for housing and food security, access to healthcare, and much more. Georgia may also experience negative impacts from an employment standpoint – with many nonprofits facing financial uncertainty in light of developments at the federal level. As of 2022, Georgia nonprofits employed individuals 297,194. According to the Urban Institute’s analysis, 66% of Georgia’s nonprofits may be financially vulnerable if proposed federal funding and contract cuts go into effect. It’s reasonable to conclude that financially vulnerable nonprofits will be forced to cut community services and may downsize staff operations – leading to rising unemployment within the sector.
Recent analyses from leading economists indicate that the U.S. economy is projected to experience slower growth in the coming years, influenced significantly by recent federal spending cuts and policy shifts. The Congressional Budget Office (CBO) forecasts a decline in real GDP growth from 2.1% in 2025 to 1.4% by 2055, attributing this deceleration to rising federal deficits and public debt, which are expected to increase from 6.2% of GDP in 2025 to 7.3% in 2055, and from 100% to 156% of GDP, respectively (Reuters). Additionally, the implementation of significant federal spending cuts and workforce reductions, as advocated by the Department of Government Efficiency (DOGE), is anticipated to further slow economic growth. Such measures are expected to lead to decreased consumer spending and increased unemployment, particularly in regions heavily reliant on federal employment (NerdWallet).
Economic downturns lead to job losses, revenue declines, and financial distress, prompting small businesses and individuals to seek alternative financial support. Studies of past recessions, particularly the Great Recession (2008-2009), indicate that community development lenders (like credit unions and CDFIs) maintained higher lending levels than mainstream banks, particularly in low-income communities. Research from the Federal Reserve and the Urban Institute has shown that CDFIs were instrumental in financing small businesses, affordable housing, and nonprofit organizations when traditional banks cut back. During the 2008-2009 Great Recession, traditional banks significantly tightened lending standards while CDFIs sustained or increased lending activities. Opportunity Finance Network (OFN) reported that its member CDFIs increased small business lending by 23% between 2008 and 2010, despite the broader credit crunch. The countercyclical nature of CDFI lending leads them to be powerful community resilience agents during economic uncertainty – which makes the Trump Administration’s threats to The CDFI Fund and key financing instruments like the New Markets Tax Credit program all the more dire.
How might each of Georgia’s congressional districts experience these impacts?
The effects of federal policy and budget changes will vary across Georgia’s congressional districts, depending on local economic conditions, workforce composition, and financial vulnerabilities. Our Congressional District Dashboard provides insight into key factors shaping these impacts, such as:
- Income and Employment: Some districts, have lower median household incomes and higher poverty and unemployment rates compared to state and national averages. These factors make them particularly sensitive to shifts in federal programs supporting workforce development, financial assistance, and economic mobility.
- Business and Industry Dependence: Changes in federal contracts, grants, and lending programs could disproportionately affect districts with a high concentration of government contractors, small businesses, and CDFI-supported enterprises. In some of Georgia’s congressional districts, women- and veteran-owned businesses make up a significant share of government contract awardees.
- Housing and Infrastructure: Housing affordability and financial vulnerability vary widely. In districts with high percentages of cost-burdened renters and homeowners, reductions in federal housing assistance could exacerbate economic strain. Additionally, areas with lower access to banking services may struggle more with credit availability if federal funding for financial inclusion programs declines.
- Nonprofit and Social Services: Many nonprofits rely on government grants to provide predictable earned and contributed income streams. In districts where a large share of nonprofit organizations already operate at a deficit without federal support, funding reductions could lead to service cutbacks, affecting low-income and underserved communities the most.
We hope this data equips leaders across the state to advocate for policies and investments that strengthen Georgia’s communities amid evolving federal budget priorities.