County leaders warn federal grant cuts and a $170 million gap could squeeze services in College Park area

Prince George's County Councilmembers told a College Park town hall on Wednesday that the county is facing an unusually difficult budget year because of uncertainty about federal grant funding and slowing revenues.

"Our budget assumes $267,000,000 in federal grant money," County Councilmember Eric Olsen said. "We don't know where we are... That layered on top of the already existing sort of budget issues... are gonna make for a very challenging time."

Olsen and County Councilmember Tom Danoga told the audience that the county faced roughly a $170 million gap earlier this year and that education and public safety account for about 80% of the county budget, leaving limited room to protect other programs. "So that only leaves 20% left for all the other things," Olsen said.

Why it matters: County-managed programs and grants support services used by College Park residents — from recreation centers and stormwater projects to small non-profits that provide food and senior services. Councilmembers said federal budget moves and potential reductions in grants could force cuts to those services and to county discretionary grants that help local nonprofits.

Council discussion and local effects

Danoga said the county budget assumes a large amount of federal grant funding at a time when federal policy changes could reduce those awards. He warned rating agencies are watching, and that federal job losses — Prince George's County employs roughly 74,000 federal workers, he said — add uncertainty to local income and property tax revenues.

Olsen said the county executive submitted a balanced budget but "with a lot of pain," and that councilors are reviewing it and choices in the coming months. "One of the biggest things I think that we're worried about is... non departmental grants and, special appropriation grants. At the moment, those are projected to be cut in half," Olsen said, citing groups such as Meals on Wheels as potentially affected.

Responses and potential measures

Councilmembers described several actions under consideration or already proposed: - A resolution asking the governor to suspend foreclosure proceedings for homeowners who are federal workers laid off in the recent federal downsizing. Tom Danoga said the resolution is pending and would be sent to the governor. "There's limited things we can do, but we have in front of us a resolution asking the governor to suspend foreclosure proceedings," Danoga said. - A small mortgage-assistance fund pilot that would provide modest one-time payments to homeowners in distress; Danoga said a draft bill would create a small fund for that purpose. - Deliberation over a senior tax credit: councilmembers said the council supports a senior property-tax credit but is discussing deferring its effective date by one year so enactment would not create an immediate $11–13 million gap in the current budget.

What was not decided

Speakers described potential measures and ongoing council deliberations but did not record a final vote on any of the items at the town hall. Councilmembers repeatedly emphasized that many proposals are subject to the formal budget and legislative process over the coming months.

Local context and next steps

Both county council members urged residents to weigh in during upcoming public forums and to use upcoming town halls to press county officials on priorities. Olsen and Danoga said copies of county planning documents and a master transportation plan are available online and at their offices. Danoga encouraged residents to attend a county town hall scheduled April 2 to dig into the budget further.

"We're in extraordinary times," Danoga said. "This is all new territory... we're gonna be contemplating a lot over the coming months."