A local economic development agency is losing 68 percent of its funding as part of cuts from the federal government.

On Tuesday, May 22 the Atlantic Canada Opportunities Agency (ACOA) announced it was axing funding to 50 organizations, including Enterprise Carleton Region.

ECR General Manager Gary Melanson says pulling the plug on rural areas will hurt the economy.

Melanson says the rest of their funding comes from municipal and provincial governments, and he doesn't see the two parties being able to make up for what they are losing.

He  tells CJ104 News losing federal funding is devastating to the organization.

He says it will be difficult for Enterprise Carleton Region to continue operating after the funding stops next May.