Anne Arundel officials outline federal grant exposure that could affect schools and county services

Anne Arundel County Council members heard Feb. 11 that federal funding supports tens of millions of dollars of county and school programs and that uncertainty around federal policy changes could force budget choices next spring.

Chris Trumbauer, Anne Arundel County budget officer, told the council the county recorded about $33,800,000 in federal grants in its fiscal 2024 operating budget and, after a recent review, about $187,700,000 of federal dollars programmed in the six-year capital improvement plan. "I can't sit here today and give you a reasonable expectation of what funding will ultimately be threatened because that is still being played out in real time," Trumbauer said.

The memo Trumbauer provided shows most operating federal funds flow to health and community development; the capital grants are distributed across districts, with the largest single item tied to Fort Meade military installation projects. Matt Stanski, chief financial officer for Anne Arundel County Public Schools (AACPS), said the district expects roughly $53,800,000 in federal-restricted grants for fiscal 2026 and that the largest federal awards to the district are special education (about $31,000,000) and Title I (about $17,000,000). "The biggest ones are obviously our special education grants at $31,000,000 and our Title I grant ... $17,000,000," Stanski said.

Why it matters: Many of the federal grants cited are reimbursable awards — the county or school system pays contractors up front and requests reimbursement later — which creates near-term cash-management risk if reimbursements are delayed. Trumbauer described a recent Office of Management and Budget memo that briefly paused federal funding activity and then was rescinded after a legal challenge; he said executive orders and other directives remain in force and are being litigated. "That pause was capturing... federal reimbursements for things that we've already done and hadn't gotten reimbursed for," he said.

Details and council questions

- Operating and capital exposure: Trumbauer grouped federal support by function and said about 70% of operating grant dollars in fiscal 2024 were in health and community development. The capital review raised the six-year CIP total from an initial scan to about $187,700,000 after accounting for federal dollars that pass through state and other entities.

- Direct federal revenue lines: Trumbauer listed roughly $10,000,000 in federal revenues the county receives directly (examples he cited include E‑Rate reimbursements for county fiber, detention center grants, forfeited-asset funds and social services support contracts). He said he could not predict which specific streams might be reduced or eliminated.

- Schools: Stanski said most AACPS federal grants are reimbursable; the district’s impact aid for Fort Meade students (about $3,300,000) is not reimbursable and typically arrives multiple times per year. He noted a DoDEA grant for renovation of Meade High School of about $114,000,000 (reimbursable) and reported the district had received just over $97,000,000 to date and a $3,900,000 payment in the week before the briefing. Stanski also said AACPS received a $1,200,000 EPA award to purchase six electric buses and that the district is monitoring reports of pauses in the EPA electric bus program.

- Food services and staff: Stanski said school food-service reimbursements total roughly $27,600,000 (funded through USDA and administered via MSDE). He also said federal funds support an estimated 475 full‑time‑equivalent positions in the district (mostly teachers and teaching assistants); that number was presented during the briefing as an approximate figure.

- Legal and fiscal options: Councilmembers asked whether the county’s rainy day fund could be used if federal grants were reduced. Trumbauer said he had asked the Office of Law and cited charter-language ambiguity: the rainy day fund is tied to general fund revenue shortfalls while many federal grants flow through a separate grant reserve fund. He warned that one-time rainy-day use would create structural problems for ongoing programs.

- Potential effects on services: Trumbauer and Stanski emphasized that some programs (notably special education) are governed by federal law and cannot simply be eliminated. Stanski said AACPS already spends roughly 40–50% more on special-education services than it receives in state and federal revenue, and that the district would need to reallocate local funds to maintain services if external support fell.

- Litigation and uncertainty: Both presenters told the council many of the administration’s directives are being challenged in court, and outcomes could change which grants are at risk. Trumbauer said he hoped for clearer guidance before the May 1 proposed-county-budget deadline but did not promise definitive answers.

Next steps and context

Councilmembers asked the administration to follow up with specific details (including which reimbursements are late and the state’s commitments on certain capital projects). Trumbauer said the administration will continue to monitor developments and provide updates during the budget process. "If we lost all the Federal support we would be in deep trouble from a fiscal standpoint," he said, describing the magnitude of the uncertainty.

No formal action or vote occurred on these items during the work session; the briefing was informational and intended to help council members as they consider the county and school budgets in the coming months.