Biweekly Policy Briefing: Issue XLI

Hello again,

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

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Changes & what they mean for funders

Budgets & Taxes

1. California budget finalized
   California’s 2026-2027 budget was signed by the Governor on June 29, with $352 billion in expenditures supported by new taxes and temporarily delaying cuts to Medi-Cal.  
   • The Stop the Hate program was renewed at $30 million for the coming budget year, after distributing more than $100 million to 180 nonprofits across California since 2021. Community organizations advocated with legislators throughout the budget cycle to ensure continued support for critical services for hate crime victims, educational programs, and prevention efforts.  
     • How and to which organizations the funds are allocated will be decided by the State in the coming months. In its first four years, the program provided $13 million to 27 organizations in San Diego and Imperial Counties.  
   • Elections got a boost with $40 million to help counties speed up results before the November election, with funding for additional election staff, equipment upgrades, voter education, and efforts to combat election misinformation. State officials say the investment could shorten vote-counting timelines while preserving California’s existing vote-by-mail and ballot-processing procedures.   
2. County of San Diego budget finalized
   San Diego County approved a $9.2 billion budget that increases funding for social services, behavioral health, public safety, and other county priorities while using one-time reserve funds to support key programs.   
   • County voters will decide in November whether to approve a half-cent sales tax measure intended to provide additional long-term funding for county services.
   • The regional Community Budget Alliance had advocated for worker protections, renter protections, a youth-focused department and more. 

Housing

1. Bi-partisan housing act in limbo
   The President declined to sign the bipartisan 21st Century ROAD to Housing Act, despite the measure receiving congressional approval his previous support. The legislation aimed to improve housing affordability by streamlining construction, reducing certain federal regulations, and limiting large investors’ purchases of single-family homes.  The president has 10 days from receiving the bill to take action on it (i.e. veto or sign) or the bill will become law without his signature.
   • The move was reportedly spurred not by any objection to the legislation itself, but as an attempt to pressure Congress to pass separate legislation requiring all voters provide proof of U.S. citizenship.  
   • San Diego Mayor Todd Gloria, now president of the U.S. Conference of Mayors, has called the Act critical to close the national housing shortfall. 
2. Transit-oriented housing law takes effect
   A new California housing law (SB 79) took effect July 1, requiring cities to allow greater housing density near qualifying transit stops. In San Diego, the changes will apply immediately in some neighborhoods, while other eligible areas will be phased in or exempted based on factors such as fire risk, historic resources, and other local planning considerations.   
3. $8.5 million dedicated to preserve affordable housing
   The San Diego City Council approved creation of an $8.5 million Affordable Housing Preservation Fund to help preserve existing affordable housing and prevent units from being converted to market-rate housing. The fund will be administered by the San Diego Housing Commission and may be used to support long-term affordability of existing housing.

Courts

1. States may limit participation in girls’ and women’s school sports
   The U.S. Supreme Court ruled that states may limit participation on girls’ and women’s school sports teams based on biological sex, holding that laws in Idaho and West Virginia do not violate Title IX. The decision was unanimous on the Title IX question, though the justices split on the constitutional issues raised in the West Virginia case.   
2. Campaign spending restrictions eliminated
   The U.S. Supreme Court struck down federal limits on coordinated spending between political parties and candidates, ruling the restrictions violate the First Amendment. The decision is expected to reshape campaign financing ahead of the 2026 midterm elections by allowing parties to spend unlimited amounts in coordination with candidates.   
3. Data protections remain in place
   A federal judge blocked the Trump administration from implementing a database combining Social Security and citizenship records that was intended to help states identify non-citizens on voter rolls. The court found the program likely violated federal privacy laws and cited evidence that inaccurate data had already led some eligible voters to be wrongly identified as non-citizens and removed from voter rolls.   
4. Mail-in ballots will continue to be counted based on postmark
   The U.S. Supreme Court upheld states’ authority to count mail ballots received after Election Day if they were postmarked on time. Following the ruling, President Trump renewed his call for Congress to pass the SAVE America Act, which would restrict mail voting and require voter ID and proof of citizenship for voters.   
5. U.S. Supreme court announces six new cases
   The U.S. Supreme Court agreed to hear six new cases for its 2026–27 term, including challenges involving Arizona’s proof-of-citizenship voter registration requirement, parental rights, asylum status, and immigration detention.   
   • The Court declined to hear President Trump’s appeal of the $5 million judgment in the E. Jean Carroll defamation and sexual abuse case.

Immigration

1. The U.S. Supreme Court rulings on numerous immigration cases offer both relief and widespread concern. 
   
   • The administration may continue denying asylum seekers entry at official southern border crossings under the former “metering” policy, which limits how many asylum seekers can present themselves each day, overturning lower court rulings that found the practice unlawful. The Court concluded that federal asylum law applies only after an individual has entered the United States, while dissenting justices argued the decision could discourage people from seeking asylum through legal ports of entry.   
   • The future of thousands of Haitian and Syrian immigrants is in question with the 6-3 ruling to allow the administration to eliminate temporary protected status, or TPS,  a special legal status created as part of the 1990 Immigration Act.  
     •  Approximately 3,000 people in the region hold temporary protected status.  
   • Haitian Bridge Alliance, based locally and working nationally, held a town hall on July 1 to share updates about what immigrants can expect.  
   • The Court struck down President Trump’s executive order ending birthright citizenship, ruling that the 14th Amendment guarantees citizenship to nearly everyone born in the United States regardless of their parents’ immigration status. The Court held that the order conflicted with both the Constitution’s Citizenship Clause and longstanding Supreme Court precedent.

Ballot Measures

1. City of San Diego measures resolved off the ballot
   San Diego will not have any city ballot measures on the November ballot after several proposals were withdrawn, rejected, or converted into ordinances. Measures addressing paid beach parking and campaign finance transparency will instead move forward through the City Council’s ordinance process, while broader proposals—including changes to the mayor’s powers—were delayed or rejected.   
2. Voters will see several tax measures
   State and County tax measures will appear on ballots, along with another in the City of Oceanside. Voters often reject all new taxes when faced with multiple options on the same ballot.
   • California’s proposed one-time 5% tax on the assets of billionaires will remain on the November ballot after supporters declined to withdraw the measure despite opposition from Gov. Gavin Newsom, business leaders, and several labor organizations. Supporters say the tax would help offset federal funding cuts, while opponents argue it could discourage investment and reduce state tax revenue.   

   • San Diego County voters will decide in November whether to approve a half-cent sales tax measure intended to provide additional long-term funding for county services.

   • On Wednesday, Oceanside’s city council unanimously voted to add its own half-cent sales tax to the ballot, hoping to generate $20 million annually for infrastructure projects.  

3. Colorado redistricting unresolved
   A Colorado Supreme Court delay is creating uncertainty around two proposed ballot measures that would allow mid-decade congressional redistricting before the 2028 elections. Supporters say the delay could hinder signature gathering and fundraising ahead of the August deadline, while Republicans continue challenging the measures in court