Policy Briefing

Catalyst Biweekly Policy Briefing Issue XVIII: Recess & Our Region

Hello again.

As Congress heads into its August recess and the pace of federal policy news slows, we’re highlighting key updates and resources to help you stay informed and prepared for what’s ahead this fall. Locally, with a fully seated Board of Supervisors, we are monitoring changes in our region with new leadership in place. Here’s a look at what happened this week.

Catch up on our previous installments here.

 

THE FACTS 
FEDERAL AND LOCAL POLICY
  • It may feel like the federal budget was just settled, but negotiations for fiscal year 2026 are already underway. The Senate Appropriations Committee advanced legislation yesterday for more than $1 trillion in fiscal year 2026 government funding for defense programs and the departments of Labor, Health and Human Services, and Education.
    • Republicans praised continued increases in defense spending, while Democrats championed the preservation of mental health services, including the national 988 suicide prevention hotline.
    • With this action, the Senate has now advanced eight of the 12 annual appropriations bills for fiscal year 2026.
    • However, as Congress heads into its August recess, the House has passed only two of the fiscal 2026 budget bills; the Senate has passed none. All 12 must be enacted before the September 30 deadline to avoid a government shutdown.
  • A judge ruled Wednesday that the Trump administration cannot enforce the proposed ban on Medicaid funding for Planned Parenthood included in the reconciliation bill the president signed earlier this month. U.S. District Judge Indira Talwani called the ban, which targeted a single organization, “legislative punishment,” and ruled it unconstitutional and a violation of Planned Parenthood’s First Amendment rights.
  • The Department of Education announced that a portion of the $7 billion in federal education grants would be unfrozen, particularly for summer and after-school programming. However, the amount released is only a small share of what California schools were expected to receive. Funding still in limbo covers everything from English learner instruction to teacher training.
  • The City Council approved a paid parking district around Balboa Park
    • On Monday, the San Diego City Council established a parking district along Park Boulevard and Sixth Avenue around Balboa Park, clearing another hurdle toward charging up to $15 to park there. Balboa Park currently offers 12 free parking lots, and visitors can also park for free on surrounding streets.
    • Community members attended the council meeting to express their concerns, including free activities and clubs attended by residents on fixed incomes who cannot afford parking and the lack of reliable public transportation to the park.
    • The City expects paid parking at Balboa Park and the San Diego Zoo to generate $11 million annually and help fill what was a $300 million budget deficit.
    • The city plans for paid parking to begin October 1.

 

COUNTY LEADERSHIP UPDATES
  • Imperial County’s new county executive officer, Dr. Kathleen Lang, recently met with Catalyst President and CEO Megan Thomas and Imperial Valley Manager Maria Peinado.
    • Dr. Lang steps into the role after decades in local government and health care administration. She shared concerns about preserving access to health care amid upcoming Medicare cuts in a community that is already underserved.
    • On July 28, the El Centro City Council approved the merger of El Centro Regional Medical Center into the Imperial Valley Health District, finalizing a long-debated consolidation. The merger signals improved health care stability to some and reduced access to others.
  • In San Diego, Paloma Aguirre was sworn in as the new District 1 supervisor. Aguirre highlighted her priorities: addressing the sewage crisis in the South Bay, expanding access to food assistance, and ensuring equitable access to housing, parks, and safe streets in her district.
  • Supervisor Terra Lawson-Remer was elected chair of the San Diego Board of Supervisors last week in a 3-1-1 vote bolstered by the now five-person board.
  • Mayor Todd Gloria has issued an executive order on immigration enforcement
    • Last week, Mayor Todd Gloria signed an executive order requiring the San Diego Police Department (SDPD) to notify his office any time officers respond to a call involving immigration enforcement. The order also establishes a department to monitor and report when SDPD officers are present during federal immigration arrests.
    • In compliance with California state law, the order directs the SDPD to maintain policies that prohibit officers from engaging in or supporting immigration enforcement.
    • The executive order also requires the city to collaborate with community partners to develop and distribute “Know Your Rights” materials for local businesses and residents. This initiative aligns with a policy adopted by the County Board of Supervisors that calls for a multilingual program to educate small business owners and employees about their rights in the event of an ICE raid.
      • Supervisor Terra Lawson-Remer noted there are about 380,000 small businesses in the county, many of them immigrant-run.

 

NONPROFITS AND FEDERAL PROGRAMS
  • While the Senate banking committee this week advanced a bipartisan housing package aimed at increasing housing access and affordability, there are concerns about the feasibility of implementing the new programs due to deep cuts to the Department of Housing and Urban Development’s budget and staffing.
  • As Congress worked to improve access to housing, President Trump signed an executive order that criminalizes homelessness and diverts money away from housing programs and policies. Ann Oliva, CEO of the National Alliance to End Homelessness, called the move “cruel and dehumanizing” in an interview.
    • In San Diego, the Housing Commission’s homelessness action plan follows a housing first model. A January Point-in-Time count of the homeless population showed a 7% decrease compared to last year.
    • In response to the executive order, the San Diego Housing Federation and a group of cross-sector advocates released a statement urging state and local officials to double down on investments in evidence-based solutions for homelessness.
  • Most of the Environmental Protection Agency’s (EPA’s) climate policies are based on a 2009 “endangerment finding” that laid out the science behind how carbon, methane, and other greenhouse gas emissions threaten human health and the climate.
    • This week, under direction from the Trump administration, the EPA proposed revoking that finding.
    • If finalized, the move would end greenhouse gas emission standards for motor vehicles and make it more difficult to regulate emissions from other industries. The proposal will be open for 45 days of public comment once published in the Federal Register.
  • Dr. Susan Monarez was sworn in yesterday as head of the Centers for Disease Control and Prevention. A longtime civil servant, Monarez has affirmed her belief in vaccines and fluoride as important public health tools, contrary to the expressed views of Health and Human Services Secretary Robert F. Kennedy Jr. While she appears to be viewed positively by CDC staff, questions remain about her ability to direct the agency independently. The CDC has lost a quarter of its staff and is set to lose half its budget in the next fiscal year.

 

THE TAKEAWAYS: What Philanthropy Can (and Is!) Doing

In times of uncertainty, there is strength in connection and power in coming together with a shared purpose. Across the Catalyst network, funders are meeting the moment — responding to uncertainty with clarity, compassion, and collaboration. You can join them by taking the following steps:

  • Save the Date: The United Philanthropy Forum’s Virtual Policy Institute will take place on November 5, 2025. The virtual forum will bring together philanthropic leaders and advocates to collaborate and strengthen advocacy capacity across the sector.
  • Census 2030: The Funders Committee for Civic Participation has released its 2030 Census Toolkit and will host a webinar on August 12 to provide an overview of the kit and discuss how philanthropy can help ensure a safe, accurate, and equitable count.
    • Contact us if you are interested in joining an in-person Census meeting with California funders on September 8 in the Inland Empire.
  • Reduce or eliminate reporting requirements: Nonprofit Quarterly cites a cost-free way for funders to support the nonprofit workforce. “By cutting back on reporting requirements, we’ve saved grantee partners time, resources, and stress,” a funder shared. “The change frees the [foundation] team up to conduct research, build relationships, and support grantee partners. Importantly, these shifts haven’t come at the expense of learning. They’ve allowed us to stay deeply connected to the work in ways that are more meaningful and less burdensome.”

 

​​ RESOURCES

  • State Budget: Interested in exploring the final state budget? You can browse the different sections of the Enacted Budget Summary here.
  • Communication Guidelines: Today’s political climate has pushed many organizations to rethink how they communicate about their work. This guide offers practical guidance for adapting narratives without compromising core values.
  • Reconciliation Bill: Now that the reconciliation bill is entering the implementation phase, dates and timelines are being solidified for when the cuts will take effect.

 

 

Talk to you soon,

Megan Thomas
President & CEO
Catalyst of San Diego & Imperial Counties