Thousands of people face losing vital services because scores of charities and voluntary organisations have lost their funding.
Groups affected help some of the most vulnerable in the community, including underprivileged children, the unemployed and women's groups.
Many could be forced to close services which have helped people in Brighton and Hove for years.
Among the worst to suffer are Brighton and Hove Citizens' Advice Bureau (CAB), which is facing a £67,000 cut, and Hangleton and Knoll Project, which did not receive any of the £45,000 it asked the council for.
money Advice and Community Support is facing a £69,000 cut and Brighton Women's Centre has lost £6,000.
CAB branch manager Chris Whitwell said: "It is very likely we will have to close the Hove office after a presence of 60 years.
"People will have to trek into our Brighton office near the station or travel all the way to Shoreham for their advice. This will affect hundreds of people."
Brighton and Hove City Council said it awarded grants to about 60 community groups, worth £2.1 million.
Don Turner, the city's executive councillor for regeneration, said: "Difficult decisions had to be taken because requests for grant assistance amounted to more than three times the available money.
"Inevitably, there will be disappointed bidders. All applicants were fairly appraised and scored under the new criteria as a result of the Best Value Review of Grants."
Some community groups were angry arts organisations landed huge grants.
The Fabrica arts gallery in Ship Street, Brighton, has been given an extra £10,000 and the Gardner Arts Centre was given a £25,000 grant.
The city council is expected to ratify the grants tomorrow.
Last night, affected groups were planning emergency meetings to discuss the decision.
Brighton and Hove Community Voluntary Sector Forum said many of its member groups were facing closure.
Sarah Christie, project manager of The Hangleton and Knoll Project, said: "We had a contingency plan in place but that was based on us losing a certain percentage of our funding, not all of it."
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