Nov. 20, 2025

For Immediate Release

Redwood City, CA – In a powerful demonstration of unified local government support, all 20 cities in San Mateo County have joined a lawsuit originally filed in August 2025 by the County of San Mateo accusing the State of California of withholding nearly $38 million in funds legally owed to local governmental agencies.  These funds are shared annually by the County and all 20 cities providing critical dollars for programs and services that include health care, public safety, and affordable housing.

The lawsuit details that this year San Mateo County local governments received only $76.5 million of the $114.3 million owed under a state funding formula – a nearly $38 million gap. The State’s initial 2025 budget proposal excluded San Mateo County’s funding entirely, but successful lobbying by the County and its State Assembly and Senate members restored two-thirds of the total owed to support critical local services for this year only.  It is highly likely that the State budget will exclude the County and its cities once again next year.

“At a time when the County and our cities are working hard to sustain critical services while confronting ongoing fiscal challenges, it’s essential that the state maintain the local funding that nearly every other jurisdiction in California continues to receive,” said Supervisor Lisa Gauthier.

All 20 cities have joined the lawsuit, underscoring the magnitude of what is at risk to local government budgets if the current $38 million is not restored and a permanent solution negotiated.  Additionally, Mono County and Alpine County are dealing with similar challenges with the State of California and have joined the lawsuit.

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