To: Board of Supervisors
Department or Agency Name(s): County Executive’s Office
Staff Name and Phone Number: M. Christina Rivera; Peter Bruland, 565-3086
Vote Requirement: Informational Only
Supervisorial District(s): Countywide
Title:
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Federal Impacts Update
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Recommended Action:
Recommended action
Receive updates on impacts of federal funding reductions and policy changes to Sonoma County residents, including updates from County safety net departments, Sonoma County Office of Education, and community partners.
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Executive Summary:
The current federal administration is changing the way local governments are funded and can provide services in ways that are unprecedented. Changes include reductions to or elimination of some programs. House Resolution 1 (HR1), signed into law on July 4, 2025, includes significant changes to requirements for receipt of benefits that will have major impacts on vulnerable populations in Sonoma County. Additionally, the administration is attempting to link receipt of funding by state and local governments with adherence to administration priorities in areas that are unrelated to the services that are being delivered by this funding. These actions create significant uncertainty for the County and other local governments. This uncertainty is magnified by the fact that a majority of federal funding flows through the State, and actual impacts to Sonoma County will depend heavily on the response of the state.
The County of Sonoma’s Fiscal Year 2025-26 adopted budget includes $386.3 million in federal funding, primarily in safety net programs and infrastructure. Other local entities, including school districts, non-profits, and federally qualified health clinics receive funding from the federal government that does not pass through the County. This meeting will provide an overview of federal funding, discuss expected impacts to County-delivered safety-net programs, discuss expected impacts to other local organizations and impacted communities, and provide an overview of actions the County is taking to mitigate and respond to federal changes that negatively impact our community.
Discussion:
The administration has approved significant changes to federal funding levels, requirements for receipt of funding, and requirements for program eligibility through executive actions and the passage of HR1. As of writing, the federal government is currently in the midst of a partial shutdown as FY 2025 appropriations lapsed on September 30 without passage of a continuing resolution, let alone a full budget. Impacts of the shutdown on Sonoma County residents and county finances are initially limited but will become significant if the shutdown continues into November. If and when a federal budget for FY 2026 is passed, it is likely to include additional changes that will impact the County.
This meeting will discuss federal impacts in several areas including:
• An overview of Federal Funding received by the County and assessed risk level of this funding
• Legal efforts taken by the County to maintain funding
• Expected impacts on safety net service from federal changes
• A discussion of community impacts from the Sonoma County Office of Education and non-profits providing services to impacted communities
• An overview of upcoming county actions
The County’s adopted budget for FY 2025-26 includes $386.3 million in funding, or about 14% of the total budget. This total includes $269.1 million in ongoing funding and $117.1 million in one-time funding. This funding supports more than one quarter of the County workforce. Most of this funding is not expected to be at risk due to specific reductions, however larger impacts are anticipated in FY 2026-27. Additionally, should a federal shutdown stretch into November, any number of key programs including CalFresh and Housing Assistance Program funding could be impacted, with additional programs impacted if the shutdown goes into January. Based on legislation currently in place, impacts are likely to be greater from changes to program eligibility rather than from funding levels.
Funding is also threatened by efforts to tie receipt of funds to support of federal policies in areas like immigration enforcement and elimination of diversity, equity, and inclusion programs. The County has joined other local jurisdictions on several lawsuits that challenge these requirements.
The greatest impacts to County programs are likely to be felt in safety net services. The departments of Human Services, Health Services, and the Community Development Commission account for approximately two-thirds of all federal funding received by the County. Changes to programs administered by these departments, such as increased eligibility requirements for Medi-Cal and CalFresh will impact tens of thousands of Sonoma County residents.
In addition to County-administered programs, Federal changes are impacting Sonoma County residents in many ways. To speak to these changes, representatives of the Sonoma County Office of Education, non-profit organizations that provide safety net services, and organizations that work with the immigrant and LGBTQ+ community will discuss impacts from and responses to federal actions.
As the County braces for upcoming impacts, it is limiting commitment of discretionary resources to prepare for upcoming needs. The county continues to pursue legal actions as appropriate and will work to advocate at the state and federal levels to mitigate impacts while working with local partners to identify key areas of need.
Attached presentations provide additional information on these areas.
The purpose of this meeting is to provide information of anticipated impacts of federal changes and county efforts at mitigation in order to keep the Board of Supervisors and the public informed of these risks.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
N/A
Fiscal Summary
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FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
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Fees/Other |
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Narrative Explanation of Fiscal Impacts:
This is an informational item only. County staff will continue to review and track effective dates of federal funding changes and present adjustments for the Board’s consideration as needed.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
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Narrative Explanation of Staffing Impacts (If Required):
N/A
Attachments:
Presentation
HR1 Timeline
Summary of Federal Funding
Related Items “On File” with the Clerk of the Board:
N/A