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Montgomery County Council unanimously approves 3% inflationary increase for nonprofit contracts
Summary
On May 8, 2025 the Montgomery County Council voted unanimously to add a 3% inflationary adjustment to nonprofit contracts in the FY26 operating budget, a measure the council and nonprofit advocates said is intended to help organizations retain staff amid rising costs.
The Montgomery County Council on May 8 approved a 3% inflationary adjustment to nonprofit contracts in the fiscal 2026 operating budget, a move council members said is intended to help nonprofit providers recruit and retain staff as costs rise.
The adjustment totals about $5,252,556 across multiple departments and, council staff said, roughly $3.5 million (about 68% of the total) is within the Department of Health and Human Services. Council staff also said each 1 percentage-point change in the inflationary adjustment is equivalent to roughly $1,750,852 across the budget.
Council members framed the vote as a floor rather than a full solution to nonprofits’ financial pressures. “Nonprofit…
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