NACo and Federal Issues Archives

Federal Shutdown Heightens Cyber Risks for Local Governments

With a federal shutdown, local governments face a growing cyber threat landscape, as fewer federal experts are available to call on for help. State and local governments must stay prepared to defend their systems as bad actors exploit uncertainty and stretched resources. As the federal government shutdown continues, cybersecurity experts warn that local agencies may face a surge in sophisticated phishing and ransomware attacks. With reduced federal support, counties may need to be prepared to…

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October 7, 2025

County News / Emergency Management / NACo and Federal Issues

Grant Freezes, Legal Fights, and Shifting Rules Deepen Turmoil for County Emergency Managers

Maryland’s county emergency managers face a rapidly shifting federal landscape as FEMA funding delays, new administrative requirements, and court-ordered restrictions converge. Recent federal actions have disrupted nearly every significant preparedness and performance grant stream — from the Homeland Security Grant Program (HSGP) to the Emergency Management Performance Grant (EMPG) — forcing states and counties to navigate an uncertain funding environment that complicates planning, reimbursement, and local readiness. Grant Awards Frozen Amid Legal and Administrative Turmoil…

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October 6, 2025

Employee Benefits and Relations / Human Resources / Labor / NACo and Federal Issues

Maryland Leads in Federal Job Losses

Maryland continues to bear the brunt of federal workforce cuts, having lost thousands of jobs since January. With federal employment a cornerstone of Maryland’s economy, local effects are expected to deepen as additional reductions take effect this fall. In a recent Maryland Matters article, Maryland lost 2,500 federal jobs in August, marking the second straight month the state has led the nation in federal workforce cuts. Since January, Maryland has lost 15,100 federal jobs, nearly…

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October 2, 2025

Read more about the article Fitch: Prolonged Federal Shutdown Could Pressure Public Finance Credits

Source: Maryland Department of Labor

County Budgets / County News / Finance and Procurement / NACo and Federal Issues / News You Can Use / State Budget and Fiscal Issues

Fitch: Prolonged Federal Shutdown Could Pressure Public Finance Credits

Fitch Ratings cautions that while governments can manage a short shutdown, a lengthier disruption could ripple through housing, healthcare, higher education, transportation, local revenues, and economic growth — with potential negative credit consequences. Fitch Ratings released a new analysis this week, warning that a prolonged shutdown could erode public finance credit strength, straining budgets and weakening the long-term fiscal outlook for governments and nonprofits most reliant on federal support. A protracted shutdown could even trigger…

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October 2, 2025

County News / NACo and Federal Issues / News You Can Use

Prince George’s Leaders Respond as Federal Shutdown Hits

With Washington at a standstill, Prince George’s County leaders are stepping up to shield residents from the immediate fallout of the federal shutdown. With the federal government officially shut down, Prince George’s County leaders are moving quickly to support residents caught in the fallout. County Executive Aisha Braveboy has directed personnel to deploy resources and coordinate with the County Council, the Moore–Miller Administration, and Maryland’s congressional delegation. The County is focusing on residents who are…

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October 1, 2025

County News / Feature / General Assembly News / NACo and Federal Issues / News You Can Use

Shutdown Countdown: State Leaders Outline Risks and Response

Maryland leaders outlined on Tuesday both the serious risks of a federal shutdown and the steps they are taking to manage its impact on workers, revenues, and local communities. Without a last-minute deal in Washington, the federal government will close at midnight. Update — October 1, 2025: The federal government officially shut down after Congress failed to reach a last-minute agreement. As the closure begins, the impacts described in Tuesday’s Joint Federal Action Oversight Committee…

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September 30, 2025

County News / Feature / NACo and Federal Issues / News You Can Use / Policy Deep Dive

Deep Dive: Budget Brinkmanship — Q&A Explainer on Shutdown Stakes for Maryland

This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top county policy issues of the day. Read all of MACo’s Policy Deep Dives. What happens if Congress misses the deadline to fund the government? Maryland counties, home to hundreds of thousands of federal workers and contractors, face another shutdown scenario that could disrupt paychecks, delay services, and squeeze local revenues. This Deep Dive explains the shutdown process,…

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September 29, 2025

County Budgets / County News / NACo and Federal Issues / State Budget and Fiscal Issues / Taxes and Revenues

Federal Government Shutdown Odds Rise, Maryland Faces Big Risks

The odds of a federal government shutdown are rising as party leaders clash over a stopgap funding bill, and no state has more at stake than Maryland. Shutdown Looms Funding expires at midnight on September 30. Without congressional action, most federal agencies will shut down or scale back operations, leading to furloughs, missed paychecks, and widespread fiscal consequences. Congress has yet to pass any of the 12 required appropriations bills for fiscal 2026. A short-term…

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September 17, 2025

County News / Economic Development / Health and Human Services / Housing and Community Development / NACo and Federal Issues / Policy Deep Dive

Blocks of Progress: How Community Development Block Grants Build Maryland

Community Development Block Grants shape the places where Maryland residents live, work, and gather. These flexible funds power local priorities that strengthen communities and fuel economic growth. Without them, critical projects in economic development, housing, and infrastructure might stall. Introduction In the federal government’s FY 2026 budget proposal, several cuts are on the table, including the elimination of key housing programs, such as the Community Development Block Grant (CDBG) program. The Program is a vital…

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September 17, 2025

Read more about the article Billion-Dollar Disasters Now Routine — Counties Shoulder Rising Costs

Source: National Association of Counties (NACo)

Emergency Management / NACo and Federal Issues

Billion-Dollar Disasters Now Routine — Counties Shoulder Rising Costs

As billion-dollar disasters hit counties with increasing frequency and cost, Maryland’s recent floods and ongoing appeal for federal aid underscore the urgency of reforms to disaster relief and the need for stronger preparedness tools. Over the past two decades, billion-dollar natural disasters have surged in both frequency and cost. The National Association of Counties (NACo) reports that in 2024 alone, counties nationwide experienced 27 such events, resulting in damages totaling $182.7 billion. By comparison, 1987…

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September 11, 2025