Counties approve emergency loans to keep Head Start and Senior Services running amid Federal funding delays

The Eastern Shore’s two county governments moved Wednesday night to shore up funding for the Eastern Shore Area Agency on Aging/Community Action Agency after federal delays jeopardized the organization’s ability to meet payroll and keep essential programs running.

In Accomack County, agency director Donna Smith told the Board of Supervisors that a backlog created by the recent federal government shutdown had stalled the release of critical grant dollars normally effective December 1. Without an emergency loan, she warned, the agency would be forced to suspend programs—including Head Start—by mid-December. Smith said she would also request assistance from Northampton County.

Supervisors expressed concern about whether federal rules would allow grant funds to be used to repay a local loan, but Smith said she had received verbal assurance that principal repayment is permitted so long as no interest is charged. Saying the agency’s services are vital and often underappreciated, Supervisor Major urged support. Supervisor Robert Crockett then moved to authorize a $65,000 bridge loan, contingent on Northampton agreeing to participate. The measure passed unanimously.

After Accomack approved the request, Smith rushed to Eastville to give the Northampton supervisors a similar appeal. Northampton’s November meeting was moved to November 19 after the regular time conflicted with the Veterans Day Holiday. Smith said the 45-day federal shutdown had disrupted grant disbursements that support Head Start, senior services, home-delivered meals, tax assistance, and other community programs. Although the agency was told its federal contracts were in the queue for release on December 1, the Thanksgiving holiday made the timeline uncertain.

Smith said the delay placed 218 families and 64 employees in limbo, noting that many staff members were preparing to leave for the holiday unsure whether they would have jobs or childcare options when they returned. Initially, she asked Northampton to match Accomack’s $65,000 commitment, but county staff said the overall risk was minimal because federal reimbursement is expected under the continuing resolution already approved by Congress.

Supervisor Oliver Bennett stressed that the crisis was caused by federal delays—not local mismanagement—and praised the agency’s longstanding service to both children and seniors across the Shore. Supervisor Ernest Smith said the county needed to “take that risk” to preserve crucial community programs.

Northampton approved the full $185,000 loan.