Gov. Brian Kemp is ordering state agencies to freeze spending at current levels during this fiscal year and fiscal 2027 to protect the state from federal funding cuts in the budget bill Congress passed this month.
The state ended fiscal year 2025 with a healthy budget surplus, but the impact of the federal budget cuts remains uncertain. As a result, a letter from Rick Dunn, Director of the Governor’s Office of Planning and Budget, calls on agency heads to develop plans for dealing with the loss of federal funding. There will be some wiggle room in the spending freeze. Agencies with “mandatory” needs that cannot be met by redirecting funds from the current fiscal year without hurting service delivery will be allowed to discuss those needs with the OPB.
Some legislative Democrats are calling on Kemp to call a special session of the General Assembly to consider providing state funds to fill the gaps caused by federal spending reductions. However, Kemp has shown so far no inclination to reconvene lawmakers under the Gold Dome before the start of the 2026 legislative session in January.
