Across the country, local governments are facing budget season with an impossible math problem. As federal funding shrinks and safety-net programs face sweeping cuts from the “One Big Beautiful Bill Act” (H.R. 1) passed by Republicans in Congress last summer, local officials are being forced to make painful choices about schools, healthcare, and other essential services. For many rural organizers and communities already operating on tight margins, these cuts will mean scaling back services people rely on, from after-school programs to emergency response services.

While many communities are bracing for the fallout or simply ignoring the impending crisis, grassroots organizers in North Carolina are showing a different path forward. Down Home NC’s rural members are turning local budget shortfalls into opportunities to build power, move elected officials to speak out, and fight for the public investments their communities need.

Impending Budget Cuts

H.R. 1 made drastic cuts to programs like SNAP and Medicaid to pay for tax cuts for the wealthy. Nationally, analysts estimate that these changes could shift nearly $1 trillion in costs to state and local governments over the next decade.

Counties will feel that shift in several ways. They will be required to cover a larger share of safety-net program costs (North Carolina is projected to pay $420 million in annual SNAP administrative costs for the first time in the program’s history, for instance). New work requirements and eligibility checks will also increase administrative burdens for counties that process applications and renewals. And as coverage shrinks, counties will face growing demand for services like public hospitals and food assistance as more Americans lose benefits.

Rural counties will be hit especially hard. Federal Medicaid cuts alone are estimated to reduce investment in healthcare in rural areas by $137 billion, far more than the $50 billion appropriated for a newly-created Rural Health Transformation Program. With smaller tax bases, limited staffing capacity, and higher reliance on programs like Medicaid and SNAP, many rural counties are on the brink of major budget shortfalls.

Read the full article about rural organizers in North Carolina by Emma Bouton and Todd Warren at The Daily Yonder.