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Prepared by Precision Advocacy
Assembly Hearing on the Impacts of Potential Federal Funding Cuts
The Assembly Budget Subcommittee No. 7 on Accountability and Oversight held a hearing last week on federal funding and what could be at risk for spending cuts under the Trump administration. Chaired by Assembly Member Gregg Hart (D-Santa Barbara), the hearing was attended by Assembly Members Heath Flora (R-Ripon), Jesse Gabriel (D-Encino), Patrick Ahrens (D-Cupertino), Rhodesia Ransom (D-Stockton), Sharon Quirk-Silva (D-La Palma), Dawn Addis (D-San Luis Obispo), Joe Patterson (R-Rocklin), Heather Hadwick (R-Grass Valley), Jessica Caloza (D-Los Angeles), and Darshana Patel (D-San Diego).
Panelists included: Ann Hollingshead and Carolyn Chu, Legislative Analyst’s Office; Mary Halterman, Department of Finance; Dr. Sevet Johnson, Ventura County; Dr. Katherine Newman, University of California; and Scott Graves, California Budget and Policy Center.
The Legislative Analysts’ Office (LAO) provided a background paper on federal funding that flows to California. In general, California is considered a “donor state” receiving an estimated 90 cents in federal funding for every tax dollar sent to Washington. California sends about $80 billion more than it receives in federal spending. This excess contribution is larger than the combined state budgets of Alaska, Arkansas, Delaware, Idaho, Iowa, Mississippi, Montana, New Hampshire, Rhode Island, Vermont, and Wyoming.
Panelists and committee members expressed widespread concern over potential federal funding cuts that could cripple California’s state budget and many key programs that residents rely on. The 2025-26 state budget relies on $170.6 billion in federal funds. The largest piece of the pie when it comes to federal funds that the state receives is health and human services funding, with 80% of the total ($134 billion) going to Medi-Cal.
Panelists covered a laundry list of programs that are funded at least in part by federal dollars including: in-home supportive services, developmental services, public health programs, child support and child welfare, the unemployment insurance program, school meal programs, high poverty school districts, wildfire prevention, and students with disabilities. $7.3 billion for higher education (UC and CSU campuses), $6.7 billion in transportation, and $2.5 billion largely for the Office of Emergency Services and Disaster Response and Recovery are also areas of significant federal spending.
Many individual Californians also benefit from direct payments via social security and medicare programs, as well as the Supplemental Nutrition Assistance Program (SNAP), student loans, and tax credits. Defense and non-defense grants and contracts, as well as wages and salaries to federal employees all have a significant impact on the state’s economy and its residents.
President Trump’s recent executive orders have called into question the future availability of a number of federal programs including those related to diversity, equity, and inclusion and those funded by the Infrastructure, Investment, and Jobs Act and the Inflation Reduction Act.
Millions of Californians could be impacted by cuts to these programs. State drawdowns of Medi-Cal funding alone average between $6 and $9 billion monthly. Up to 15 million Californians would be impacted by decreased spending in the Medi-Cal program.
Dr. Sevet Johnson, CEO of Ventura County, characterized potential cuts to healthcare as being devastating to counties. She also detailed programs at risk that support everything from transportation infrastructure to social services.
Legislators noted the need to make tough budget choices in the face of federal spending cuts, a discussion which included raising taxes as a potential option. Assembly Member Quirk-Silva called the potential cuts “horrifying”.
When asked what the state’s options are for withholding federal tax dollars, Carolyn Chu from the Legislative Analysts’ Office responded that it would take a mass collective action on the part of the individual Californians to not file their taxes.
In preparation for the state’s May budget revision, Chair Hart summarized the broad impacts that federal cuts could have on nearly every aspect of California’s economy, and asked the Department of Finance to provide a full assessment report on the potential impacts of federal cuts by April 1.
Governor Announces New Funds for Housing and Homelessness Services with Strings Attached
Governor Gavin Newsom held a press conference on Monday, announcing new funding and with increased accountability measures for local governments to address homelessness in their communities. The governor also previewed a new accountability and transparency website that he plans to expand across other state departments. The site seemed in part, a response to federal demands to show how and where tax dollars are being spent, and how California is making progress in addressing homelessness and the housing crisis.
As part of the funding announced, the state is providing local governments with $118.7 million in Encampment Resolution Funding to support 14 projects intended to move people out of encampments and into shelters and housing. Additionally, the state is releasing nearly $42 million of Homeless Housing, Assistance, and Prevention (HHAP) Round 5 funding for five regions including Orange County, as well as announcing the availability of more than $760 million for HHAP Round 6. Key priorities for HHAP Round 6 include preserving, developing, and supporting permanent housing solutions; ensuring interim housing and outreach services have sustainable funding structures; aligning funding with strong regional partnerships that make notable progress on homelessness solutions; and ensuring meaningful engagement with tribal governments and people with lived experience of homelessness.
Orange County HHAP Funding

Santa Ana, Anaheim/Orange County CoC HHAP Funding

During the press conference, Governor Newsom reviewed various counties’ information on the new accountability website including statistics on housing, homelessness, and behavioral health. He characterized the website as a carrot and stick approach that aggregates statewide information and allows users to compare different jurisdictions. In reference to the website’s color coded system, Newsom said “if we continue to see red, we just can’t fund red. Because that’s funding failure.” He also referenced the need for “claw back” provisions for state funds if local targets are not being met.
The site specifically highlights whether jurisdictions are in compliance with state housing law. On Orange County’s page, for example, the website shows the county housing plan as being in compliance with state standards (green), but lists Anaheim, Costa Mesa, Fullerton, Huntington Beach, Seal Beach, and Villa Park as being out of compliance (red). It lists the city of Brea as being a “prohousing jurisdiction”. Newsom emphasized that the website would be updated and improved as more information becomes available.
In response to the release of the data tool and press conference, California State Association of Counties CEO Graham Knaus issued the following statement:
“Governor Newsom’s latest in a long series of websites is just spin without the substance to back it up. Counties aren’t the bottleneck to addressing housing and homelessness. The real barriers to progress are the state-mandated bureaucratic hurdles that slow local governments down, forcing them to navigate a maze to get resources on the ground.
Counties believe in accountability, and we welcome HHAP Rounds 5 and 6 funding. But nothing the governor announced today moves California any closer to tackling the problem. The money going out the door today is two years overdue. And the governor’s threat to block future funding for local governments puts headlines above solutions.
Progress will remain frustratingly slow until we work together to address the gaps in responsibility at all levels of government – including the state. Blaming local governments won’t alleviate the homelessness crisis. Real partnership and long-term investments will.”
Upcoming Hearings
Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.
Monday, March 03, 2025, 2:30 p.m.
Assembly Budget Subcommittee No. 1 on Health
State Capitol, Room 126
Informational Hearing
Item No. Description
4800 California Health Benefit Exchange
- Department Update: Federal Enhanced Subsidies
4150 Department of Managed Health Care
4140 Department of Health Care Access and Information
- Oversight Issue: Office of Health Care Affordability and Health
- Care Payments Data
- Oversight Issue: CalRX
- Oversight Issue: Health Workforce Development
0977 California Health Facilities Financing Authority
Monday, March 03, 2025, 2:30 p.m.
Assembly Budget Subcommittee No. 6 on Public Safety
State Capitol, Room 447
Informational Hearing
Item No. Description
5225 Department of Corrections and Rehabilitation
7870 California Victim Compensation Board
Monday, March 03, 2025, 2:30 P.M. or upon adjournment of Assembly and Senate Floor Sessions
Assembly Joint Hearing Assembly Transportation and Senate Transportation
1021 O Street, Room 1100
Informational Hearing: Declining Gas Tax Revenues
Tuesday, March 04, 2025, 9:00 a.m.
Assembly Joint Hearing Assembly Business and Professions and Senate Business, Professions, and Economic Development
1021 O Street, Room 1100
Sunset Review Oversight Hearing
- Bureau of Real Estate Appraisers
- California Department of Real Estate
- Veterinary Medical Board
- California Board of Optometry
Tuesday, March 04, 2025, 1:30 p.m.
Assembly Budget Subcommittee No. 5 on State Administration
State Capitol, Room 447
Informational Hearing: California Film Tax Credit
Item No. Description
0509 Governor's Office of Business and Economic Development
Tuesday, March 04, 2025, 1:30 p.m.
Assembly Health
1021 O Street, Room 1100
Informational Hearing: The State's Behavioral Health Transformation: Implementation and Planning Updates
Wednesday, March 05, 2025, 8:00 a.m. Upon adjournment of Joint Legislative Audit
Assembly Joint Hearing Joint Legislative Audit and Joint Legislative Committee on Emergency Management and Assembly Emergency Management
1021 O Street, Room 1100
Oversight Hearing: California Is Not Adequately Prepared to Protect Its Most Vulnerable Residents From Natural Disasters (Report 2019–103)
Wednesday, March 05, 2025, 9:30 a.m.
Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation
State Capitol, Room 447
Informational Hearing
Item No. Description
3940 State Water Resources Control Board
3860 Department of Water Resources
Various Prop. 4 - Safe Drinking Water, Drought, Flood, and Water Resilience Spending Plan
Various Prop. 4 - Coastal Resilience Spending Plan
Wednesday, March 05, 2025, 1:30 p.m.
Assembly Budget Subcommittee No. 3 on Education Finance
State Capitol, Room 444
Informational Hearing: Proposition 98 Overview: All Departments
Wednesday, March 05, 2025, 1:30 p.m.
Assembly Utilities and Energy
1:30 p.m. - State Capitol, Room 437
Oversight Hearing: Utility Wildfire Spending
Wednesday, March 05, 2025, 1:30 p.m.
Senate Joint Hearing Health and Agriculture
1:30 p.m. - 1021 O Street, Room 1200
Informational Hearing: Response to the Avian Flu: Looking at Biosecurity and Disease Monitoring Systems in California
Thursday, March 06, 2025, 9:30 a.m. Or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 2 On Resources, Environmental Protection, and Energy
9:30 a.m. - 1021 O Street, Room 2200
Item Description
0540 Natural Resources Agency
3110 Special Resources Programs
Tahoe Regional Planning Agency
3125 California Tahoe Conservancy
3340 California Conservation Corps
3480 Department of Conservation
3540 Department of Forestry and Fire Protection
3600 Department of Fish and Wildlife
3720 California Coastal Commission
3790 Department of Parks and Recreation
Thursday, March 06, 2025, 9:30 a.m. Or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services
1021 O Street, Room 1200
Item Description
5180 Department of Social Services
CalFresh and Food Programs
CalWORKs
SUN Bucks
Automation
Thursday, March 06, 2025, 9:30 a.m. Or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113
Item Description
0890 Secretary of State
0950 State Treasurer
0840 State Controller
0981 California Achieving a Better Life Experience Act Board
Thursday, March 06, 2025, 9:30 a.m. Or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
State Capitol, Room 112
Item Description
5225 Department of Corrections and Rehabilitation
Governor’s Press Releases
Below is a list of the governor’s press releases beginning February 19.
February 26: Governor Newsom grants executive clemency
February 26: Governor Newsom announces statewide plan for economic growth, $245 million for more jobs — with additional investment for LA’s recovery
February 25: Governor Newsom issues statement on federal investments in Sites Reservoir
February 25: Los Angeles wildfire hazardous debris cleanup reaches substantial completion in record time
February 25: Governor Newsom expands first-in-the-nation program to transform underutilized state land into affordable housing
February 24: Governor Newsom announces stronger accountability measures, launches new tool measuring local progress in tackling homelessness
February 23: California to launch first-in-the-nation digital democracy effort to improve public engagement
February 21: Governor Newsom announces appointments 2.21.25
- Bhavana Prakash, of San Jose, has been appointed to the Physician Assistant Board
- Joanne Pacheco, of Fresno, has been appointed to the Dental Hygiene Board of California
- Mark Apostolon, of Stockton, has been appointed to the 2nd District Agricultural Association San Joaquin Fair Board
- Kevin Alto, of McKinleyville, has been appointed to the 9th District Agricultural Association Redwood Acres Fair Board
- Norma Rojas-Mora, of Bakerfield, has been appointed to the 15th District Agricultural Association Kern County Fair Board
- Emily Schoeder, of Dixon, has been appointed to the 36th District Agricultural Association Dixon May Board
- Elizabeth Lincoln, of Kelseyville, has been appointed to the 49th District Agricultural Association Lake County Fair Board
February 20: Governor Newsom announces appointments 2.20.25
- Mayumi Kimura, of Temecula, has been appointed Deputy Secretary of Woman Veterans at the California Department of Veterans Affairs
- Justin Turner, of Sacramento, has been appointed Chief Counsel at the California Department of Conservation
- Anthony “Tony” Marino, of Sacramento, has been appointed Deputy Director of Energy at the Office of Energy Infrastructure Safety
- Travis Nichols, of Sacramento, has been appointed Cyber Incident Response Manager at the California Governor’s Office of Emergency Services
- Lynda Hopkins, of Sebastopol, has been appointed to the California Air Resources Board
- Dawn Ortiz-Legg, of San Luis Obispo, has been appointed to the California Air Resources Board
- Tina Thomas, of Sacramento, has been appointed to the Wildlife Conservation Board
- Frances “Fran” Pavley, of Agoura Hills, has been reappointed to the Wildlife Conservation Board, where she has served since 2018
- Travis Clausen, of Garden Grove, has been appointed to the Underground Safe Excavation Board
February 19: Governor Newsom announces appointments 2.19.25
- Andrew “Andy” Nakahata, of San Francisco, has been appointed Chief Deputy Executive Director and Chief Operating Officer at the California Infrastructure and Economic Development Bank
- Diane Lydon, of Sacramento, has been appointed Assistant Deputy Director and Northern California Regional Advisor at the Office of the Small Business Advocate
- Brian Lin Walsh, of Rocklin, has been appointed Principal Labor Relations Officer at the California Department of Human Resources
- Joseph Tuggle, of Placerville, has been appointed Warden of Folsom State Prison
- Kelly DeRoss, of Sacramento, has been appointed Labor Relations Officer at the California Department of Human Resources
- Jennifer Haley, of Rancho Palos Verdes, has been appointed to the California Workforce Development Board
- Amelia Tyagi, of Los Angeles, has been appointed to the California Workforce Development Board
February 19: Lawsuit against Norwalk for unlawful ban on homeless shelters moves forward
February 19: California nominates Steve Jobs for its American Innovation Coin, $1 coin to be produced by U.S. Mint
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