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Federal shutdown compounds issues for Clinton County budget

LOCK HAVEN — With a federal government shutdown just beginning and the Pennsylvania State House and Senate still deadlocked on its budget going into month four, Clinton County officials are grappling with uncertainty as they prepare their 2026 budget.

The federal shutdown began Wednesday after President Donald Trump and Congress failed to come to an agreement to keep programs and services running.

According to The Associated Press, the disagreement stemmed from a deadlock in Congress over Democratic demands about health care — and Republican efforts to push that issue down the road.

“At issue are tax credits that have made health insurance through the Affordable Care Act more affordable for millions of people since the COVID-19 pandemic. The credits are set to expire at the end of the year if Congress doesn’t extend them — which would more than double what subsidized enrollees currently pay for health insurance premiums, according to a KFF analysis,” the AP reported.

In Clinton County, the addition of a government shutdown on top of a continued gridlock regarding the state’s own budget — which should have been passed over the summer — creates unique challenges in preparing for the upcoming year.

“We are finalizing the 2026 budget amidst uncertainty from the unresolved state budget and federal shutdown. Predicting the timeline for state and federal reimbursements and grant disbursements to counties is a rather challenging task,” Chief Operating Officer/Chief Clerk Desiree Myers told The Express. “These funds are crucial for mandated services, mainly human services programs.”

In early September, when the county’s board of commissioners signed a resolution urging the state to pass its budget, Myers said the county relies on state funding for programs in departments such as Children and Youth Services among others.

Now with federal dollars, which can often be filtered through the state government, potentially being put on hold until elected officials return to session, that uncertainty has grown.

According to reports by Pennsylvania Capital Star, the Commonwealth reported spending nearly $45 billion in federal funding in the most recent state audit for the 2024 fiscal year.

Of that, about $5.2 billion was federal pass-through money — meaning it’s already marked for counties, school districts and other recipients, Penn Capital Star reported. The funding isn’t subject to state discretion; however, the commonwealth must appropriate at least some of it via the state budget.

Myers told The Express the county is continuing to try and meet challenges brought on by the latest shutdown as best as it can. She noted, if necessary, the county will dip into its reserves or make adjustments to its programs temporarily.

“Despite these planning challenges, we are committed to a responsible and balanced budget that protects essential services, public safety and county programs. If state or federal funds are delayed, the county may use reserves or make short-term adjustments,” she said. “However, I am confident that we will ensure that mandated programs will continue to operate.”

Myers said county officials intend to monitor what decisions and movements are made both in Harrisburg and Washington, DC, and adjust preliminary budget plans as new information is brought forward.

“At the end of the day, our priority is to ensure stability for Clinton County, despite the uncertainty surrounding us,” she said.

Commissioner Angela Harding expressed frustrations over the federal government’s shutdown — brought on by an inability for both sides of the political aisle to come together.

“It is hugely frustrating that as we are currently working through our 2026 budget with the goal being to hold the line, not raise taxes on an already burdened county, maintain services and try to do all of this with no clear idea when the state and feds will do their jobs,” Harding told The Express. “Elected officials at the state and federal level need to do the work and get to the finish line on behalf of all of us. They could take a lesson from the local government.”

Commissioner Jeff Snyder noted the county’s finances are in good shape, but expressed concerns over the support services that rely on state and federal funding to operate.

“Interest payments should be covered by the state and federal governments when they fail to pass their budgets on time,” he said. “It’s wasted funding being taken away from constituents because the elected representatives haven’t done their job.”

“We will monitor any impacts on a daily basis and try to continue services where we are able to,” Snyder concluded.

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