Biweekly Policy Briefing: Issue XL

Hello again,

Here’s a look at what happened this week. Catch up on previous installments of this briefing here.

Get the facts

Changes & what they mean for funders

Budgets & Taxes

1. City budget adopted
   San Diego city officials finalized a budget to address a $118 million deficit, preserving library, recreation center, arts, and homelessness services while maintaining other funding priorities. The adopted budget also includes targeted investments in stormwater maintenance and traffic safety, though leaders continue to face long-term funding and infrastructure challenges.
2. City council approves contracts with three employee unions
   The San Diego City Council approved three-year contracts with three city employee unions that include scheduled wage increases through 2029. The agreements also require employees to take 40 hours of unpaid furlough in fiscal years 2027 and 2028 as the city addresses ongoing budget pressures.
3. MTS approves plan to freeze fares for low-income riders
   The San Diego Metropolitan Transit System approved a plan to freeze fares for low-income riders if a broader transit fare increase is approved later this year. The proposal comes as MTS faces a projected $94 million budget deficit and seeks additional revenue to avoid future service cuts.
4. County releases updated budget proposal
   San Diego County released an updated $9.16 billion budget proposal for fiscal year 2026–27, reflecting public feedback and staff recommendations ahead of a Board of Supervisors vote later this month. The revised budget increases funding for behavioral health, public safety, affordable housing, infrastructure, and safety-net programs while addressing uncertainty around future state and federal funding. 
5. California legislators approve SB 125
   In a move expected to raise health insurance costs for some consumers, California legislators approved Senate Bill 125, which will lower the tax on Medi-Cal insurance plans and raise the tax on private plans to the same level. The bill restructures the state’s managed care organization tax after new federal rules ended California’s practice of taxing Medi-Cal plans at a higher rate than private plans.
   • Supporters say the change is needed to preserve billions in federal Medi-Cal funding, while critics warn it will shift costs onto privately insured Californians, with one estimate suggesting a family of four could pay $400 more a year in premiums.
   • Though she ultimately voted to approve the measure the following day, Sen. Akilah Weber Pierson, a San Diego Democrat, raised concerns over the economic burden to constituents during a hearing Wednesday, saying she found the tax plan “extremely problematic”.
   • The measure still requires the governor’s signature and approval from the Trump administration before taking effect.
6. Senate Republicans are divided over the President’s proposed reconciliation package
   Senate Republicans remain divided over President Donald Trump’s proposal for a $350 billion reconciliation package focused on military spending and other policy priorities. Several Republican senators have expressed doubts, citing disagreements over funding offsets and concerns about advancing another major spending package ahead of the midterm elections.

Democracy

1. Concerns about voter outreach and civil liberties were raised in Ohio
   Federal actions in Ohio are raising concerns about voter outreach and civil liberties. Last week, FBI and Justice Department agents searched the Ohio Organizing Collective, a progressive voter outreach organization in what is expected to be a competitive election. Agents also approached staff and volunteers at other locations, demanding information about their activities. The search follows a January 2026 DOJ request that Ohio’s secretary of state provide access to voter data.
2. Georgia will not redraw districts (yet)
   Georgia House leaders announced they will not redraw the state’s legislative or congressional districts during the current special legislative session, despite Gov. Brian Kemp’s request following the Supreme Court’s Louisiana v. Callais decision. Republican lawmakers said they need more time to assess the ruling’s implications and gather public input before considering changes to the maps.

Ballot Measures

1. High-profile measures have qualified for California’s November ballot
   Two high-profile measures have qualified for California’s November ballot: a proposed one-time 5% tax on billionaires’ assets and a voter ID initiative requiring proof of citizenship and identification. Supporters of the billionaire tax say it would address critical funding needs, while opponents argue it could harm the state’s business climate. The voter ID measure is expected to generate significant debate over election administration and voter access.
2. New rideshare passenger safety requirements also head to the ballot
   A statewide ballot measure that would expand rideshare company liability and establish new passenger safety requirements has also qualified for California’s November 2026 ballot. The proposal would classify rideshare companies as common carriers and mandate annual fingerprint-based background checks and public reporting of sexual misconduct incidents.
3. Measure seeking to strengthen countywide health and safety needs qualifies for the ballot
   The San Diego County Health and Safety Act — whose supporters include Children First San Diego, SEIU Local 221, San Diego Foundation, First 5 San Diego, and San Diego County Hospital Association, among others — will go to voters on the November ballot. The permanent half-cent sales tax would generate an estimated $367 million in its first year for health and nutrition services, Tijuana River pollution mitigation, and public safety, including preventing cuts to 911, wildfire prevention, and crisis response.

Immigration

1. House passes $70 billion immigration enforcement funding bill
   The House narrowly passed a $70 billion immigration enforcement funding bill and sent it to President Trump for his signature after weeks of internal Republican disagreements. The legislation funds Immigration and Customs Enforcement and Customs and Border Protection through the end of Trump’s term and passed on a largely party-line vote.
2. Asylum and immigration processing will resume
   A federal judge has ruled that U.S. Citizenship and Immigration Services must resume making decisions on a backlog of more than one million pending asylum applications and restart processing of visas for people from 39 countries that the Trump administration had paused last year.
3. Mega hearings begin in San Diego
   The San Diego Immigration Court has begun holding large “mega” master hearings, scheduling dozens of cases at once as part of a broader national trend. On the first day of the expanded docket, an immigration judge ordered 50 people deported after determining they had failed to appear for their hearings. Advocates raised concerns about short notice periods and access to due process.

Other

1. Federal agents probe Governor Newsom and First Partner Siebel Newsom’s nonprofit ties
   Gov. Gavin Newsom’s office said federal agents have contacted people connected to him and his wife, First Partner Jennifer Siebel Newsom, as part of a Justice Department investigation into her finances and nonprofit organizations. The investigation has involved interviews of potential witnesses and grand jury subpoenas, and is examining Siebel Newsom’s taxes and finances tied to nonprofits she founded, including the Representation Project and California Partners Project.
   • Worth watching for the sector: regardless of outcome, the case is likely to renew attention on governance practices at nonprofits with close ties to public figures.
2. Mayor Gloria elected to a prestigious national leadership role
   San Diego Mayor Todd Gloria was elected president of the U.S. Conference of Mayors, becoming the first San Diego mayor and the first openly gay leader to hold the role. Gloria said his priorities will include housing production and affordability, neighborhood safety, and support for the bipartisan 21st Century ROAD to Housing Act. He also said the organization will advocate for accountability reforms for federal immigration agents.
3. Moratorium on data center projects passes in Imperial County
   The Imperial County Board of Supervisors unanimously approved a 45-day moratorium on new data center projects while officials study potential land-use and zoning regulations. The action follows months of public concern about the impacts of large-scale data centers on the county’s water supply, power grid, and environment.