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: Study Session: 2026 Legislative Priorities
RECOMMENDATION:
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Study session on San Mateo County’s 2026 State and Federal Legislative Priorities.
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BACKGROUND:
The 2026 Legislative Session Program for San Mateo County defines the County's state and federal legislative priorities for the upcoming sessions. These priorities, together with existing positions and policies, direct the County’s legislative advocacy. The Intergovernmental and Public Affairs Unit (IGPA) of the County Executive’s Office prepares the County’s Legislative Session Program with direction from Board members and in coordination with County departments, the County Executive, state associations, legislative advocates, and community partners.
Preparation of the County’s updated legislative program began in fall of 2025, when the IGPA staff met with County departments to review their legislative priorities. Staff also reviewed the priorities of key state associations, including the California State Association of Counties (CSAC) and the Urban Counties of California (UCC), to ensure alignment. In January 2026, IGPA staff met with Board offices to review recommended draft legislative priorities and individual supervisor priorities.
Board of Supervisors President Noelia Corzo has requested a study session on February 10, 2026, to review the staff-recommended draft priorities, add the underlined language, and align on state and federal priorities.
DISCUSSION:
In 2026, the proposed list of state and federal priority issues includes:
1. Protecting In-Lieu VLF Revenue - The Vehicle License Fee (VLF) Swap was an integral part of the 2004 Budget compromise, where, in exchange for local funding of the Educational Revenue Augmentation Fund (ERAF) III shift and a permanent reduction to the VLF rate (a critical funding source for counties and cities), the State agreed to pay them for the lost VLF revenue. The funding would come through the redirection of a portion of each county’s local ERAF and, if necessary, the property taxes from non-basic aid school districts to counties and cities. Schools do not suffer any revenue loss due to the VLF swap as the State backfills its guaranteed funding levels.
Under current law, no statutory mechanism exists to fully reimburse counties and cities for lost VLF revenues when the funding sources identified in Revenue & Taxation Code § 97.70 are insufficient. The County supports and will seek state reimbursement in the years needed to ensure full payment.
The County will also seek a permanent legislative fix to ensure it and its cities receive their full in-lieu VLF payments on time. The County strongly opposes any efforts to pay the State's VLF obligation by utilizing the County’s and cities’ own property tax revenues (Returned ERAF) or other independent revenue sources.
2. Mitigating Impacts of H.R. 1 and Other Federal Actions - The passage of H.R. 1 will result in significant and direct impacts on the low-income and vulnerable children, youth, and older adults the County serves. There will also be dramatic cost impacts to the County related to (1) increased County workload; (2) direct cost shifts; (3) indirect impacts and strain on the safety net; and (4) health care financing restrictions. Working with its statewide organizations, the County will strongly advocate to mitigate the impacts of H.R. 1 and other federal actions to safeguard vulnerable populations, stabilize County and provider systems, and prevent the further erosion of critical federal funding streams. This advocacy will encompass policy and budget priorities related to indigent care, CalFresh and other social services programs, Medi-Cal, public hospitals, and other county programs that are directly or indirectly impacted. In addition, the County will advocate for policies that: (1) prevent service disruptions, protect safety-net programs, sustain county workload capacity, and offset anticipated losses in federal revenues; (2) focus on equity, ensuring that policy and administrative choices do not worsen disparities or limit access for low-income, immigrant, or marginalized residents; and (3) promote intergovernmental coordination so that state agencies, counties, and community partners can align on operational strategies, data needs, and communication to the public.
At the federal level, the County will strongly oppose actions that erode funding for safety-net programs, including, but not limited to, child welfare services, the Supplemental Nutrition Assistance Program (SNAP), and homelessness funding. The County will look for opportunities to advocate for the mitigation of, and ultimately the reversal of, the harmful cuts to Medicaid and SNAP that were enacted as part of H.R. 1, and to continue protecting other county-administered safety net programs that support vulnerable populations.
3. Developing Affordable Housing - The County places a high priority on increasing the availability of affordable housing. Since the advent of the County’s Affordable Housing Fund in 2013, it has invested millions of dollars in County funds to construct and preserve thousands of affordable housing units. To advance this mission, the County will advocate for policies, regulations, and funding opportunities that promote healthy, safe, accessible, service-enriched, and affordable housing for people at all income levels near jobs, transportation, and other amenities that make counties like San Mateo a desirable place to live and result in higher development costs compared to other parts of the state.
The County will advocate for robust and sustained state and federal funding that supports the development and preservation of affordable housing across income levels, including housing for residents experiencing or at risk of homelessness and for extremely low-, very low-, low-, and moderate-income households. Additionally, the County will support efforts to maintain and strengthen tenant protection policies and rental assistance programs that prevent homelessness as rents continue to rise. The County will also advocate for equitable and transparent allocation of state and federal housing funds and for policies that recognize the higher costs of development in counties with strong job centers and limited land availability.
Recognizing the importance of building housing at all income levels to address San Mateo County’s housing shortage, the County will support legislation, policies, and regulatory reforms that reduce barriers, delays, and unnecessary costs associated with housing development. This includes streamlining permitting and approvals, addressing excessive fees and delays that impact affordable housing, supporting sustainable transit-oriented development, and exploring innovative building methods that could reduce construction costs for affordable housing.
In addition, the County strongly supports policies and funding that expand affordable housing opportunities for populations critical to the County’s economic stability and service delivery, including public-sector and essential workers whose wages have not kept pace with housing costs. This includes supporting legislation that enables the development of housing by local governments or reduces barriers to building workforce housing.
4. Ending Homelessness - The County strives to reach a functional zero level of homelessness, where every unsheltered person who chooses assistance will be provided interim or permanent housing. Shelter capacity has increased by 54 percent since the pandemic, including the addition of the San Mateo Navigation Center. In FY 2024-25, the Human Services Agency’s Center on Homelessness launched a new model of services to help house people living in encampments, including tailored case management, diversion, and housing services.
Ongoing financial assistance from the state will be needed to reach this goal. Therefore, the County will actively seek state support for ongoing services to be provided at the new Navigation Center and support proposals that advance its efforts to combat homelessness, including additional funding for homeless prevention services and funding dedicated explicitly to permanent housing and supportive/wrap-around services to help the unhoused achieve more permanent housing solutions. The County also supports ongoing, flexible funding for programs that have evidenced success in keeping individuals permanently housed, outreach programs to engage homeless individuals meaningfully, and focused efforts to reduce homelessness among adults over the age of 50 that address the needs of and recognize the particular causes of homelessness among this age cohort.
Further, the County believes combating homelessness requires a statewide, holistic, comprehensive strategy that provides sustained funding and clear levels of responsibility at all levels of government. Thus, it supports adopting a comprehensive state-level system that includes ongoing, flexible financing for the costs of providing services to unhoused residents and those at risk of homelessness and prioritizing the development of an adequate housing continuum accessible to all Californians.
At the federal level, the County will advocate to protect and enhance funding for key housing and homelessness programs administered by the U.S. Department of Housing and Urban Development and call for the reestablishment of the United States Interagency Council on Homelessness, which played an essential role in coordinating the federal response to homelessness.
Finally, the County will advocate for the advancement of state laws, policies, and funding to help persons with serious mental illness and addictions receive voluntary and involuntary treatment, supportive services, and housing.
5. Infrastructure Investments to Build Resiliency - In 2025, the legislature reauthorized and rebranded California’s climate market program as Cap-and-Invest, which sets a declining limit on greenhouse gas (GHG) emissions while allowing regulated entities to buy and trade emissions allowances. The State’s portion of the Cap-and-Invest auction proceeds is deposited in the Greenhouse Gas Reduction Fund (GGRF), and those funds are reinvested into projects that reduce GHG emissions and advance climate resilience. Similarly, Proposition 4, the 2024 voter-approved climate resilience bond, provides a significant new funding source for wildfire resilience, water security, and community adaptation projects. The County will advocate to ensure that GGRF and Prop. 4 funds are directed toward locally identified priorities, including wildfire prevention and response, climate-resilient infrastructure, and adaptation strategies.
California continues to be on the front lines of preparing for and responding to extreme weather events and natural disasters, including catastrophic wildfires, earthquakes, and floods. State and federal resources and partnerships play a key role in supporting local efforts to strengthen infrastructure, protect communities, and enhance long-term resilience. As disasters grow in frequency and complexity, counties rely on a framework that is responsive, consistent, and tailored to local needs. At the federal level, the County will advocate for the modernization and improvement of the Federal Emergency Management Agency (FEMA) to ensure a more effective, reliable, and transparent federal disaster response system.
6. Immigrant Community Protection - The County’s community health and economic stability depend on contributions from vibrant immigrant communities. In the current political atmosphere immigrant communities throughout the County are living under increased fear and uncertainty as well as family destabilization. The County will advocate for state and federal policies and funding that support immigrant communities, including, but not limited to, legal services and emergency housing. The County will support state-level efforts to maintain and expand protections and programs for residents regardless of immigration status.
The County will support the creation and expansion of state-level protections and programs for residents regardless of immigration status, including access to health care, housing stability, food assistance, worker protections, and education. The County will continue to uphold policies, fully limit local participation in federal immigration enforcement permitted by law, ensure County services are accessible without regard to immigration status, and invest in trusted community-based organizations and language access services to ensure immigrant residents can effectively access resources.
The County will advocate for state and federal policies that preserve due process, prevent unlawful detention and family separation, and prohibit the use of local resources for civil immigration enforcement.
7. Protecting Vulnerable Communities - At a time when federal policies threaten our most vulnerable residents, and organizations that support them are facing significant defunding, it is more important than ever for the County to bolster its safety net and advocate for protections at the state and federal levels. Disproportionately impacted communities include, but are not limited to immigrants, LGBTQIA+ people, women, BIPOC, justice-impacted people, and the uninsured. The County prioritizes fostering an inclusive, equitable, and welcoming environment where all individuals feel safe, respected, and supported. As a Certified Welcoming place, the County is committed to ensuring that people of all backgrounds, identities, and lived experiences can fully participate in civic, social, and economic life. This commitment is reflected in County policies, programs, and partnerships that center dignity, belonging, and opportunity for all residents.
The County supports and affirms that LGBTQIA+ residents belong and are valued members of our community. Through the work of the LGBTQIA+ Commission, the County elevates community voices, advises on inclusive policies, and promotes equity across County services. In addition, the County works to ensure access to essential resources, including culturally competent and gender-affirming care, mental health supports, and safe spaces, so that LGBTQIA+ individuals can live healthy and authentic lives free from discrimination.
San Mateo County also strongly advocates for women’s reproductive health and healthcare freedom. The County recognizes that access to comprehensive reproductive healthcare is fundamental to personal well-being, economic security, and gender equity. By supporting these rights and resources, the County affirms its dedication to health equity, personal choice, and the overall well-being of our community. Beyond our community, the County recognizes that individuals in neighboring states have lost access to reproductive care and remains committed to supporting those who seek services here.
The County’s state and federal advocacy efforts will focus on the above priorities, if approved by this Board. These legislative priorities will be added to the County’s revised standing policies (Attachment A), and a final 2026 San Mateo County Legislative Program will be brought back to this Board for consideration and approval on February 24, 2026.
COMMUNITY IMPACT:
The County’s state and federal advocacy efforts and the 2026 Legislative Session Program support policies that represent the County’s interests and further or enhance the needs of County residents.