Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Connie Juarez-Diroll, Chief Legislative Officer
Subject: Quarterly Legislative Presentation and Acceptance of the May 2026 Informational Report on the 2026 State and Federal Legislative Sessions
RECOMMENDATION:
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Accept the presentation of the May 2026 quarterly informational report on the 2026 state and federal legislative sessions.
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BACKGROUND:
Over the past month, the California State Legislature reviewed thousands of bills in policy and fiscal committees. The May 15 deadline marked the final day for fiscal committees to meet, hear, and report to the Floor any bills introduced in their respective houses. Although many fiscal bills-including those that appropriate funds, impose costs on state agencies, or significantly reduce state revenue-failed during the Appropriations Suspense Hearings, numerous proposals continued to advance. All other non-fiscal bills approved by committees before the May 1 deadline proceeded to the Floor of their respective houses. All bills now face a May 29 deadline to pass out of their house of origin.
On May 14th, Governor Newsom released his final May Revision to the FY 2026-27 state budget. The Intergovernmental and Public Affairs (IGPA) Unit is currently working with County departments to identify the potential impacts of the administration’s proposal. A more detailed description and analysis of the May Revise will be provided to your Board on June 9th.
At the federal level, President Trump released his Fiscal Year 2027 budget proposal on April 3, calling for $1.5 trillion in defense spending. This request includes the largest year-over-year increase in defense spending and a 10 percent reduction in non-defense discretionary spending. Similarly, the House Appropriations Committee has begun its markups, with 4 of the 12 bills already approved by the full committee. Lastly, Congress is working on a Reconciliation 2.0 package that will include several significant policy initiatives; Senate Concurrent Resolution 33 directs the drafting of legislation to provide $70 million in multi-year funding for Customs and Border Patrol (CBP) and Immigration and Customs Enforcement (ICE). Passage of this resolution by both houses would allow Republicans to use the budget reconciliation process to fund CBP and ICE for several years without democratic votes. Their goal is to get a final bill to President Trump by June 1.
DISCUSSION:
State Legislative Update
President Corzo and Supervisor Speier joined Assemblymember Papan and Senator Becker a few weeks ago to testify before the State Assembly and Senate Budget Subcommittees on State Administration, urging members to restore $157 million in Vehicle License Fee revenue owed to the County and its 20 cities. The County will continue to press state lawmakers and the Newsom Administration for funding and a permanent solution during the ongoing budget negotiations. The Legislature must pass a balanced budget by June 15.
The California State Association of Counties (CSAC) is also urging the California State Legislature to prioritize the impacts of H.R. 1. They highlight that H.R. 1 poses the most significant challenge to local communities, and that without sustained state partnership, California’s safety net will deteriorate. San Mateo County, along with 40+ counties, has called on state leaders to support the county family’s multiyear, countywide H.R. 1 budget request. The request includes funding for the following:
Ø County Indigent Care
o $761 million in 2026-27 and $2.4 billion in 2027-28 and ongoing - Funds state-mandated, subsistence level care for the estimated 33% of individuals who will lose Medi-Cal coverage, seek this care, and be eligible.
Ø Public Hospital Systems
o $500 million in 2026-27 and $850 million in 2027-28 and ongoing - Stabilizes public hospital system revenues and protects patient care.
Ø County Eligibility
o $373 million in 2026-27 and $402 million in 2027-28 and ongoing - Funds implementation of new eligibility requirements for Medi-Cal and CalFresh and robust screening and supports to maximize the number of individuals who can retain coverage and assistance.
Ø County Behavioral Health
o $224 million in 2026-27 and $828 million in 2027-28 and ongoing - Funds behavioral health services for individuals who will lose Medi-Cal coverage and seek services from counties.
Additionally, CSAC launched a statewide public affairs campaign, “Protect Our Safety Net,” to raise awareness and build support for securing County funding in the final 2026-27 state budget.
State Legislation
The IGPA Unit continues to track and monitor legislation of interest to the County. The list below includes bills on which the County has acted to-date during the 2026-27 legislative session, consistent with the County’s legislative session program.
Bills Acted On (7)
Housing
• SB 417 (Cabaldon) The Affordable Housing Bond Act of 2026 - Support
Would enact the Affordable Housing Bond Act of 2026, which, if adopted, authorizes the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and home ownership programs, including, among others, the Multifamily Housing Program, the CalHome Program, and the Joe Serna, Jr. Farmworker Housing Grant Program.
Health
• SB 1422 (Durazo) Medi-Cal: Eligibility: Immigration Status - Support
Would delete provisions of existing state law that freeze program enrollment in full-scope Medi-Cal coverage for individuals who do not have satisfactory immigration status.
• AB 2081 (Stefani) Medi-Cal: Home and Community-Based Alternatives Waiver - Support
Would require the State Department of Healthcare Services to expand capacity in the Medi-Cal Home and Community-Based Alternatives Waiver to enroll every eligible applicant.
Child Support
• AB 1643 (Nguyen) Child Support - Support
Would require that all child support payments be directed to the State Disbursement Unit, and would authorize the court to direct the local child support agency to appear on behalf of the minor children to enforce the order.
Parks
• SB 949 (Becker) Environmental Protection: Natural Resources Agency: Resource of Statewide Significance: Santa Cruz Mountains - Support
Would designate the Santa Cruz Mountains as a resource of statewide significance that requires special protection. The bill would require the Natural Resources Agency and its boards, departments, and conservancies, to the extent that resources are available, and when appropriate, to encourage collaborative stewardship approaches that support the protection, restoration, and preservation of the Santa Cruz Mountains, among other things.
Agriculture/Weights and Measures
• SB 1327 (Reyes) Weights and Measures: Electric Vehicle Supply Equipment: State Authority - Oppose
Would shift the authority to establish weights and measures standards for electric vehicle (EV) chargers from the California Department of Food and Agriculture (CDFA) to the California Energy Commission (CEC) and would also sunset county sealers’ authority to enforce weights and measures on EV chargers.
Sustainability
• AB 2508 (Hoover) Public Utilities Public Purpose Programs Fund - Oppose
Would remove the costs of certain programs from electric investor-owned utility (IOU) rates and instead create a Public Utilities Public Purpose Programs Fund (PUPPP Fund) in the State Treasury, to be funded through appropriations from the Greenhouse Gas Reduction Fund (GGRF).
Furthermore, the following list includes bills on which the County has not yet acted on, but that align with the County’s legislative session program. The IGPA Unit will submit position letters once these bills have been referred to a policy committee and have been scheduled for a hearing.
Education
• SB 968 (Becker) Community Colleges: San Mateo County Community College District - Support
Would remove a sunset date of July 1, 2028, for a statute that authorizes the governing board of the San Mateo County Community College District (SMCCCD) to adopt a policy to use local unrestricted general funds to provide fee waivers and other assistance to help cover the total cost of attendance for students residing within the boundary of SMCCCD.
Emergency Management
• AB 1607 (Gonzalez) Emergency Medical Services - Support
Would extend both the January 1, 2027 sunset date on the Maddy Emergency Medical Services (EMS) Fund (which provides reimbursements for EMS), and the January 1, 2027 sunset on provisions in law that authorize county boards of supervisors to elect to levy an additional penalty in the amount of $2 for every $10 upon fines, penalties, and forfeitures collected for criminal offenses (which provide funding for pediatric trauma services) until January 1, 2037.
Environmental Health
• SB 811 (Caballero) Hazardous Materials: Metal Shredding Facilities - Oppose
Would establish a comprehensive scheme for the regulation of metal shredding facilities that would be administered by the Department of Toxic Substances Control pursuant to authority separate from laws governing the control of hazardous waste.
Sustainability
• AB 762 (Irwin) Disposable, Battery-Embedded Vapor Inhalation Device: Prohibition - Support
Would prohibit, beginning January 1, 2027, a person from importing or manufacturing for sale in this state a new or refurbished disposable, battery-embedded vapor inhalation device, and, beginning January 1, 2028, a person from selling, distributing, or offering for sale a new or refurbished disposable, battery-embedded vapor inhalation device in this state.
Labor
• AB 1838 (Berman) Public Contracts: Local Agencies: Responsive Bidders - Support
Would require a contractor, as a condition of submitting a bid to a local agency for a public works contract, to fully disclose any history of wage and hour violations and provide supporting documentation and would authorize a contractor that fails to provide the required disclosures and supporting materials to be disqualified from the bid.
The attached 2026 Legislative Activity Report lists the bills tracked to date. Throughout the session, the IGPA Unit reviews newly flagged and amended legislation and adds to the current list.
Federal Legislative Update
President Trump’s FY 2027 Budget Outline
On April 3, President Trump unveiled his Fiscal Year 2027 budget proposal, which places a strong emphasis on U.S. military investments over domestic programs. This plan reflects the administration’s values and priorities and signals the start of the annual appropriations process. Nonetheless, Congress, which is tasked with federal spending, can create its own budgets and appropriations bills that incorporate all, some, or none of the President’s proposed framework.
Aside from the 44 percent boost to the Pentagon for FY 27, the President’s priorities include increased funding for immigration enforcement, air traffic controllers, and national parks, as well as reductions in green energy, housing, and health programs. Specifically, the budget roadmap supports:
• Immigration enforcement and deportation operations-including eliminating aspects of a refugee resettlement paid program;
• Opening detention facilities-100,000 beds for adults and up to 30,000 for families;
• Increasing funding by 13 percent for the Department of Justice to focus on violent criminals;
• $10 billion for the National Park Service for construction and beatification projects in Washington, DC; and
• $481 million in additional funding to enhance aviation safety and support the administration’s air traffic controller hiring surge.
The allocations described above are also paired with eliminations in the following areas:
• $15 billion in cuts from the Biden-era bipartisan infrastructure law, including funding for renewable energy projects and cuts to the National Oceanic and Atmospheric Administration grants;
• 19 percent cut in the Department of Agriculture, ending certain grants and programs;
• 13 percent cut got the Department of Housing and Urban Development, including eliminating the Community Development Block Grant (CDBG) Program and homeless assistance programs; and
• 12.5 percent cut to the Health and Human Services Department, including the Low-Income Home Energy Assistance Program (LIHEAP).
Congressional Action
Just before Congress left for its one-week recess in early May, House Republicans advanced several legislative priorities. These actions included:
• Advancing bipartisan legislation, the Doug LaMalfa Federal Disaster Tax Relief Certainty Act (H.R. 5366), which would extend tax relief for victims of federally declared disasters;
• Adopting a Senate-backed budget resolution paving the way for Republicans to use the reconciliation process to seek nearly $70 billion in additional immigration enforcement funding, specifically for ICE and CBP through the remainder of President Trump’s term-congressional committees will have to draft the detailed reconciliation package in the weeks ahead;
• Ending the 76-day partial shutdown by approving a Senate-passed bill to fund the remaining agencies within the U.S. Department of Homeland Security, including FEMA, TSA, Secret Service, and the Coast Guard, along with others; and
• Approving a new Farm Bill, which governs a wide range of agricultural and food programs in the United States. Notable amendments include changes to the Supplemental Nutrition Assistance Program (SNAP) to allow beneficiaries to purchase rotisseries chicken and remove controversial pesticide labeling language. These changes are significant as SNAP benefits have traditionally been limited to foods intended for home preparation. Although passed by the House, the Senate has not introduced its own version of the bill.
County Federal Budget Requests
In March, the IGPA Unit, in collaboration with Carpi and Clay (the County’s federal advocacy firm), the CEO leadership team, and County departments, submitted three Community Funding Requests to the County’s federal delegation for consideration. The proposed projects included:
• $200,000 for the Coastside Emergency Generator Project (Submitted to the Office of Rep. Sam Liccardo, Office of U.S. Sen. Alex Padilla, and Office of U.S. Sen. Adam Schiff)
o Funds would be used to purchase two 60 kw generators for emergency power for vulnerable communities on the San Mateo County coast.
• $750,000 for the Middlefield Road Improvement Project (Submitted to the Office of Rep. Kevin Mullin)
o Funds would support the construction phase of the Middlefield Road Improvement Project, spanning approximately 0.3 miles between 5th Avenue and the County/Town of Atherton limits in the North Fair Oaks community. The project includes roadway resurfacing and the implementation of a complete streets design to enhance safety and accessibility for all residents.
• $1.1 million for the Coyote Point Recreation Area, Magic Mountain Restroom Replacement (Submitted to the Office of Rep. Kevin Mullin)
o Funds would be used to support the design, permitting, demolition of the existing restroom, and construction of a new modern restroom facility adjacent to the new Magic Mountain playground at Coyote Point Recreation Area.
The County was notified that two of the three earmark requests had been selected for submission. Representative Mullin submitted the San Mateo County Middlefield Road Improvement community project funding request for $750,000 to the Appropriations Committee for FY27. Representative Liccardo included the $200,000 community project request for San Mateo County Coastside Emergency Generators in his submission.
While there are still several steps in the process of securing funding for these projects, making it onto the Congressman’s submission lists is a critical milestone. The IGPA Unit will continue to track its progress and keep the Board informed on future developments.