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Budgets & Taxes

1. County supervisors approve arts and culture expansion
   The San Diego County Board of Supervisors approved a proposal May 6 to expand county funding for arts and culture programs, including grants for artists, creative spaces, and cross-border cultural initiatives. The plan includes ongoing annual investments focused on underserved communities and one-time support for the Black Arts and Culture District in Encanto. Supporters described the funding as both an economic and cultural investment. The proposal comes as the City of San Diego considers major reductions to its own arts funding programs.
2. $1 billion Secret Service funding challenged
   Senate Republicans moved May 20 to remove a $1 billion Secret Service funding request tied to President Donald Trump’s White House ballroom project from a broader immigration enforcement bill after objections from GOP senators and a ruling from the Senate parliamentarian. Republicans said the provision did not comply with Senate budget rules, while some lawmakers also questioned the use of taxpayer funds for the project. The funding request included security upgrades tied to the proposed East Wing ballroom expansion. Democrats are expected to continue challenging other provisions in the immigration package.
   • On Thursday, Republicans called off a vote on the immigration package, likely delaying consideration until after the Memorial Day recess. Disagreements over the bill stem from the proposed $1.8 billion anti-weaponization fund, which would compensate people, including those convicted in connection with the Jan. 6, 2021, riots, who believe the government unfairly “weaponized” actions against them.
3. $1.3 billion in Medicaid funding to California deferred
   The Trump administration announced May 6 it would defer $1.3 billion in Medicaid funding to California as part of a broader health care fraud crackdown. Administration officials said the action was tied to concerns about spending patterns in California’s home care program, though they did not provide specific examples of fraud. California officials disputed the claims, saying growth in home care services reflects efforts to keep residents out of more expensive nursing homes. The administration also announced a six-month freeze on some new Medicare enrollments for hospice and home health care providers.
4. Proposed settlement on Balboa Park parking and city trash fees announced
   San Diego leaders announced a proposed settlement May 20 that would eliminate paid parking in Balboa Park by Jan. 1, 2027, and reduce planned city trash fees following legal and public challenges to both policies. Trash fees would decrease from $55 to $38.75 per month beginning July 1, 2027, under the agreement, which still requires City Council approval in June. City officials said the settlement follows months of public opposition, including ballot measure efforts and litigation over the trash fee structure. Supporters of the agreement said the changes could reduce costs for residents and help restore visitation to Balboa Park businesses and museums.

Democracy

1. Arguments heard in federal cases on election policies and voter data 
   Federal courts heard arguments this week in separate cases involving Trump administration election policies and federal access to voter data. One case challenges President Donald Trump’s March executive order seeking expanded federal voter lists and restrictions on some mail ballot deliveries, while another centers on the Department of Justice’s attempt to obtain unredacted Michigan voter registration records under the Civil Rights Act. A lower court previously blocked the DOJ request.
2. Census 2030 is underway
   While the decennial questionnaire will not reach households until spring 2030, the operational test in Alabama and South Carolina launched on May 1 and governments will conduct the local update to census addresses (LUCA) in early 2027. Both a constitutional mandate and a fundamental marker of democracy, census and redistricting processes help describe our nation’s residents and decide how funding is distributed and the political power held in each region.
   • Census data is used to allocate federal funding, so an undercount can cost millions or even billions of dollars to states. California receives $77 billion of Census-guided funding annually according to the Public Policy Institute of California.
   • Concerns about policies likely to reduce response rates include English-only communications, less emphasis on community partnerships that rely on trusted messengers, and widespread mistrust about how the government will use and protect the information it collects.
   • During the 2020 Census, regional nonprofits formed a coalition of 100 organizations housed at United Way of San Diego County, while philanthropy distributed nearly $1 million through a pooled fund hosted by Catalyst of San Diego & Imperial Counties to support grassroots outreach to hard-to-count communities.
   • Philanthropy California launched its 2030 Census Funders collaborative earlier this year. Please contact us to learn more.

Nonprofits

1. Records demand letters sent to three nonprofits
   House Ways and Means Committee Chairman Jason Smith, R-Mo., sent letters to three nonprofit organizations demanding records related to alleged foreign-linked funding and fiscal sponsorship activities. The letters build on ongoing committee investigations into the tax-exempt sector and concerns about potential foreign influence in U.S. policymaking.
2. Southern Poverty Law Center pleads not guilty to federal fraud charges
   The Southern Poverty Law Center pleaded not guilty to federal fraud charges filed in April. A coalition of 400 civil society organizations sent a letter to Congress condemning the charges.
   • The House Judiciary Committee held a hearing on May 20 related to the organization’s ongoing legal and oversight matters. Witnesses included Maya Wiley, president and CEO of the Leadership Conference on Civil and Human Rights, who called the indictment an attack on civil rights organizations.
3. Open Society Foundations announces large-scale democracy initiative
   George Soros’ Open Society Foundations announced May 20 a $300 million initiative to support democracy, civil rights, and economic security efforts in the United States over the next five years. Foundation leaders said the funding will support organizations focused on voting rights, rule-of-law protections, economic opportunity, and government accountability. The announcement comes amid increased scrutiny of nonprofits and charitable organizations by the Trump administration and congressional allies. Open Society Foundations said the initiative will prioritize state-level policies and programs that could later expand nationally.

Immigration

1. Advocacy groups call for sexual misconduct investigations of CBP and ICE
   Advocacy groups sent a letter to Congress May 13 citing more than 170 allegations of sexual misconduct involving CBP and ICE personnel and calling for investigations into the agencies before additional federal funding is approved. The letter references allegations spanning from 1975 to 2026, including sexual assault, rape, and misconduct involving minors. The groups argued that the reported cases may represent only a fraction of the problem and urged Congress to establish stronger oversight mechanisms within the Department of Homeland Security.
2. Countywide care and response for immigration 
   San Diego regional organizations recently shared a countywide plan to monitor ICE activity in communities and provide family and legal support to impacted individuals. The efforts connect nonprofit organizations and community volunteer networks and leverage private and State funding. To learn more, please connect with me.

Other

1. Calipatria places moratorium on new data center development
   The Calipatria City Council voted unanimously May 13 to begin the process for a moratorium on new data center development, potentially making it the first jurisdiction in Imperial County to enact such a freeze. Local officials said the proposed pause would allow the city to study the impact of high-energy-demand facilities and revise zoning and land-use regulations. The decision comes amid growing local opposition to rapid AI infrastructure expansion and followed the filing of recall notices against three city officials. The council is expected to hold formal public hearings before any moratorium takes effect.
2. Bipartisan Charity Parity Act introduced
   Bipartisan lawmakers introduced the Charity Parity Act this week to expand Qualified Charitable Distributions to include 401(k)s and 403(b)s and allow certain one-time charitable gift annuity contributions beginning in 2026. The legislation is backed by a coalition of nonprofit and charitable organizations, including the National Council of Nonprofits, United Way Worldwide, and the Salvation Army.
3. ROAD to Housing Act passed by House
   The House passed the bipartisan 21st Century ROAD to Housing Act on May 20, advancing legislation aimed at increasing housing affordability, expanding housing supply, and supporting homeownership. The bill includes provisions limiting large institutional investors’ ownership of single-family homes and measures intended to expand lending by community banks. The legislation passed with White House backing after negotiations between House and Senate lawmakers over investor restrictions and housing requirements. The bill now returns to the Senate for further consideration.

Takeaways & Resources

Actions you can take

1. Review public input on San Diego budget
   Review the results of public input into the City of San Diego’s budget and the city’s May revise.
2. Understand how the Ad Hoc Latino Leaders Group is shaping California’s policy landscape
   Attend this upcoming briefing to learn more about the Ad Hoc Latino Leaders Group’s work to shape policy and governance landscape ahead of the 2026 gubernatorial transition – and explore how philanthropy can help advance equity, opportunity, and dignity in the next administration’s priorities.
3. Learn election protection strategies
   The California Policy Forum will host a webinar June 16 focused on election protection strategies and voting access ahead of upcoming elections. The event will bring together nonprofit leaders, philanthropic organizations, and community advocates to discuss efforts to combat voter suppression and support secure voting processes.
4. Review the state budget revision
   Governor Gavin Newsom released California’s revised 2026-27 state budget proposal May 14, projecting stronger-than-expected revenues while warning of continued long-term budget challenges and federal funding cuts. The proposal includes new business tax limits, a digital software tax, and increased education funding for K-12 schools and community colleges.
5. Examine low voter turnout
   Learn how persistently low voter turnout, particularly among low-income voters and young people, continues to influence election outcomes across the country.