Budget Director paints dire outlook with risk to hundreds of millions in federal funding to county services

April 1, 2025

At Tuesday's King County Council Health, Housing and Human Services Committee, King County Budget Director Dwight Dively, along with community health and housing providers, painted a grim picture of the impact of federal cuts, threats and executive order implications. The presentation dove deep into the future impacts of potential cuts or even temporary freezes to federal funding for county services.

“This onslaught of federal cuts has created a dire and evolving crisis that stands to impact every aspect of the programs and services provided by the County, and every community in our region,” said King County Councilmember Teresa Mosqueda, who chairs the HHHS Committee. “The County will stand strong in our values, stand with our communities who are under attack by the federal administration, and fight back against illegal attempts to pillage federal funding and policies. We will continue to daylight the impacts of these cuts on everyday residents across our region and do everything we can to shore up our communities in the face of this system devastation of our systems and safety net.”

King County’s operating budget includes over $200 million in federal funding, as well as additional federal funding that comes through the state, and capital budgets often include expected federal funding several years into the future. But with some federal agencies being directed to stop payments on existing grants or impose new conditions – conditions that could violate state law or county policy – millions in funding are at risk, according to Dively’s presentation.

Director Dively and service providers summarized key risks to county funding:

• Illegal attempts by the Trump administration to take back funding that has already been appropriated for programs and services provided by the County
• New, unacceptable conditions on grants that the County has relied upon for decades
• Upcoming substantial funding cuts to discretionary programs like Medicaid, and programs administered by Public Health and the Department of Community and Human Services
• Risks to provider funding even as clients and residents face increased needs threats due to identities and/or immigration status, and suffering from cuts to food programs, Medicaid, housing vouchers, more
• Rising costs of affordable housing construction caused by tariffs exacerbating existing cost challenges due to inflation

These risks come as the county faces a $150 million shortfall for the 2026-2027 biennial budget.

Mosqueda has advocated for proposals in the state House and Senate to create new revenue options for counties, including lifting the antiquated 1% cap on County property tax increases that have failed to keep pace with population growth and inflation, and progressive options that will allow the county to continue providing programs and services county residents reply upon. Dively also said an interdepartmental team is assessing risks to federal revenue, monitoring any new developments, and coordinating communication with agencies and potentially impacted county partners.

Mosqueda has invited Director Dively to join the Health, Housing, and Human Services committee on a monthly basis to provide an update on threats to federal funding, impacts to the County, and how the county can best respond.

Watch the full presentation here.