BETHESDA, Md. (7News) — Federal budget cuts could soon ripple through local communities, and Montgomery County officials said they’re already preparing for the potential loss of millions in grant funding. This week, county leaders detailed an emergency plan to protect critical services — from housing to food assistance — as Washington debates major spending reductions.

Federal grants account for about 9% of Montgomery County’s revenue, with roughly $350 million in grant funding aiding health, safety, and transportation programs.

County officials warn that cuts to those grants could strain critical services for working families.

Nearly 35% of local households already struggle to cover basic expenses, and about 40,000 federal workers and contractors in the county could also be impacted.

“These changes are expected to have a significant impact on nonprofits and community organizations both here in Maryland and Montgomery County,” said Council President Kate Stewart. “Data from the Department of Government Efficiency shows at least 473 terminated or frozen contracts and grants to nonprofits and businesses in Montgomery County. Four hundred seventy-three.”

Supporters of the so-called “One Big Beautiful Bill” (H.R. 1) argue the cuts are temporary, saying funds are being redirected to larger national programs.

In response, Montgomery County has shifted $1 million to local food banks while monitoring possible changes to SNAP and Medicaid funding. Nonprofits said the slowdown in grants is already creating real pain on the ground.

“We are a little nervous about the slowdown in awards we’ve won from state and local agencies — how long will they take to get here?” said David Silbert, Executive Director of So What Else, a nonprofit that provides meals and essential supplies across the region. “We’ve always wanted to be an organization that never has to say no. When someone comes to the door hungry, we want to feed them.”

Across the D.C. region, food insecurity is rising as nonprofits struggle to meet growing demand.

The Capital Area Food Bank said it has distributed millions more meals than planned, while the United Way of the National Capital Area warns that many working families are seeking help for the first time. With the federal shutdown dragging on and local budgets tightening, many organizations are cutting staff, delaying projects, and leaning more heavily on volunteers and private donations.

Officials said they are pushing for emergency relief and urging Congress to move quickly before more local programs are forced to scale back or close.