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Policy Briefing

Biweekly Policy Briefing: Issue XLII

Hello again,

Pride Week festivities are underway in San Diego, culminating this weekend with events that bring our community together to celebrate LGBTQ+ joy, resilience, and rights. Get out there and show your solidarity, support, and love for our neighbors.

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. State budget preserves homelessness funding
    As part of California’s newly enacted 2026–27 state budget, the state will fully fund the seventh round of the Homeless Housing, Assistance and Prevention (HHAP) program. Mayor Todd Gloria said the funding will allow San Diego to continue expanding shelter, outreach, and housing programs that connect more people experiencing homelessness with services and permanent housing.
  2. SNAP changes raise uncertainty
    A report on the Supplemental Nutrition Assistance Program (SNAP) describes how recent federal policy changes — including expanded work requirements, funding changes, and administrative delays — have created uncertainty for recipients. Changes are already reducing access to food assistance, increasing food insecurity, and placing additional financial and mental health strain on affected households.

    • As of June 2026, 367,581 San Diego County residents receive CalFresh, California’s SNAP benefits program, including 223,883 children and 99,682 seniors. New work requirements began being enforced on June 1.
  3. Federal budget framework moves forward
    GOP leaders advanced a proposed $95 billion reconciliation package out of the House Budget Committee on Thursday.

    • The next step is a floor vote, which House Speaker Mike Johnson says he will bring forward next week. This leaves him just a few days to convince numerous party members concerned that the plan contains no cuts to pay for the increase in spending.
    • The plan would begin the reconciliation process for legislation that includes up to $73 billion for defense and intelligence, $12 billion for agriculture, and up to $10 billion for election-related initiatives including promoting strict voter ID laws.
    • The budget resolution must be approved by both chambers before lawmakers can draft and vote on the funding package.

Housing

  1. Road to Housing Act becomes law
    The bipartisan 21st Century Road to Housing Act became law automatically after President Trump declined to sign or veto it within the constitutional deadline. The law includes more than 40 provisions aimed at increasing housing affordability, including incentives for homebuilding, limits on large corporate purchases of single-family homes, support for manufactured housing, and measures to streamline residential development.

    • San Diego housing leaders said the new law could help boost local housing production by expanding affordable housing tax credits, supporting ADU construction, encouraging commercial-to-housing conversions, and rewarding communities that increase housing supply. Local officials welcomed the bipartisan measure but emphasized that additional state and local action will still be needed to address housing affordability.

Immigration

  1. White House says ICE vehicle stops will continue
    The Department of Homeland Security referred reporters to comments by White House press secretary Karoline Leavitt in response to a request for clarification about its temporary halt to vehicle stops. The pause followed the fatal shootings of Lorenzo Salgado Araujo and Johan Sebastián Durán Guerrero in Texas and Maine.

    • DHS officials had said it was to review enforcement practices as lawmakers seek answers about the recent incidents.
    • On Thursday, though, the White House said that Immigration and Customs Enforcement officers will continue to conduct vehicle stops.
  2. DHS purchases the Otay Mesa detention center
    The Department of Homeland Security has purchased the Otay Mesa Detention Center from CoreCivic for $739.2 million as part of a $1.5 billion acquisition of two California detention facilities. Prior to this sale, there were eight privately run immigration detention centers in the state.

    • Otay Mesa detainees and advocates have complained of inhumane conditions in the past. California law guarantees access for public health inspection to county supervisors. After two supervisors in San Diego were refused access to Otay Mesa Detention Center, the County sued the federal government and CoreCivic. In early June, they won access.
    • CoreCivic says it will continue managing day-to-day operations under its existing ICE contract, but that contract ends in August 2027.

Democracy

  1. Democrats removed from the Federal Election Assistance Commission
    President Trump removed the two Democratic members of the bipartisan Election Assistance Commission, leaving three Republican members in place. The president cited the Supreme Court’s recent expansion of presidential authority over independent agencies when making the change. Critics say the move politicizes election administration, while supporters argue it strengthens election security. The immediate impact on the 2026 midterms is expected to be limited.
  2. Election monitors deployed in primary elections
    The U.S. Department of Justice announced it will deploy election monitors to 15 jurisdictions across six states during this summer’s primary elections. The administration said the monitors are intended to observe jurisdictions with past election concerns, while critics argue the move comes amid broader efforts to expand federal involvement in election administration. The Brennan Center for Justice offers this guidance on how election monitors can be helpful or harmful.
  3. President Trump claims evidence of election fraud and vulnerability
    In an address to the nation on Thursday evening, the President announced the release of intelligence revealing weaknesses in election infrastructure. The documents have been posted on the White House website

    • The address sought to make the case for the SAVE America Act, a bill that would enact strict voter ID laws and eliminate mail-in ballots with limited exceptions.
    • News outlets varied in their coverage with some running the remarks live, some cutting away regularly for analysis and fact-checking, and several not airing the live address at all.

Local

  1. New partnership for Civic Center redevelopment
    Downtown civic and business leaders are proposing the creation of a joint powers authority (JPA) between the City of San Diego, the San Diego Community College District, and the San Diego Unified School District to coordinate redevelopment of the Civic Center. If approved, the new authority would oversee planning, financing, property management, and long-term redevelopment of the area, with proposals including housing, arts and education facilities, public space, retail, and a hotel. The proposal is expected to go before the City Council later this year.
  2. Regional homeless report highlights progress
    The Regional Task Force on Homelessness’ 2025 Data and Performance Report found improvements across several key measures, including permanent housing placements (23% to 29%), veteran housing placements (30% to 42%), and street outreach success rates. Returns to homelessness also declined and first-time homelessness decreased among most populations served.

    • The report noted a few continued challenges, including differences in outcomes across racial and ethnic groups, longer periods of homelessness for adult-only households and seniors, and the need to improve stable, long-term housing.
  3. New funding proposal for Tijuana River cleanup
    Supervisor Paloma Aguirre proposed using a future sales tax-backed bond to fund a Tijuana River diversion project. The proposal would finance construction of a treatment system designed to reduce sewage flowing through the Tijuana River into the Pacific Ocean by diverting river water through a new treatment facility.

Other

  1. Proposed IRS regulation on school funding
    OIRA is reviewing proposed changes to 501(c)(3) rules that would clarify that schools engaging in racial discrimination are not considered charitable organizations. While details have not yet been released, the changes could expand the “fundamental public policy” doctrine to organizations that use race-conscious grantmaking.

    • The proposal builds on the Supreme Court’s 1983 Bob Jones University v. United States decision, which held that organizations violating fundamental public policy can lose their tax-exempt status.
    • The project appears in the 2025–2026 Treasury and IRS Priority Guidance Plan and has advanced to active regulatory review, though no proposed rule has yet been published. Organizations that use race-conscious scholarships, grants, or programs are being encouraged to review those initiatives with legal counsel and monitor for a future public comment period.
  2. Defense secretary blocks several Navy promotions
    Defense Secretary Pete Hegseth removed seven senior Navy officers from a list of 22 people nominated by a promotion board for the rank of two-star admiral. Five of those removed were women or people of color according to defense officials. The Pentagon did not provide a specific rationale, though the secretary noted that “affirmative action promotions have sky-rocketed.” Senate Democrats questioned the decision and asked whether it complied with established promotion policies. The move is expected to result in no active-duty female Navy officers being promoted to admiral this year.

    • This comes as Secretary Hegseth touted a “high-testosterone” military on social media and announced plans to begin testing service members over the age of 30 for testosterone levels and offering optional treatment for those with low readings.
    • The disqualifications include pioneering Rear Adm. Amy Bauernschmidt, who became the first woman to command a nuclear aircraft carrier in 2021 and is now the USS Carl Vinson carrier strike group commander in San Diego.​​​​​​
  3. Court blocks proposed IRS settlement
    A federal judge issued a 54-page ruling rejecting a settlement tied to the President’s IRS lawsuit. The court found the proposed settlement, which included the multibillion-dollar Anti-Weaponization Fund, was improper, sanctioned two of Trump’s attorneys, and referred one for possible state bar discipline.
  4. Attacks continue on rights and safety for LGBTQ+ people
    KFF Health News recently updated its tracker of executive actions affecting LGBTQ+ health and the Congressional Equality Caucus called out recent rollbacks of federal anti-discrimination protection in schools.

 

Takeaways & Resources

Actions you can take

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  1. Housing on the ballot: Join Philanthropy California, the League of California Community Foundations, and the San Francisco Foundation on July 28 at 11:00 AM to learn more about how housing is showing up on California’s ballot. We’ll be joined by guest speakers Assemblymember Buffy Wicks and Chris Hoene, Executive Director of the California Budget and Policy Center, who will discuss the measures impacting housing on the ballot and the role philanthropy can play to ensure California is a place where everyone has a safe, stable home.
  2. July is Disability Pride Month, a time to remember the history of and celebrate the progress made in disability rights, justice, and inclusion. The Disability & Philanthropy Forum shares 35 ways for philanthropy to be in solidarity with disabled movement leaders during this month and beyond through learning and action.
  3. California Environmental Youth Advisory Council: CalEPA has created a new California Environmental Youth Advisory Council to give young people a voice in state environmental policy. The inaugural one-year pilot program will include 10 members, ages 14–20, who will advise CalEPA on environmental issues, participate in mentorship and education opportunities, and help elevate youth perspectives in state decision-making. Applications will open later this summer.
  4. Voter Safety webinar: Nonprofit VOTE will host a July 29 webinar on supporting safe and accessible voting. The session will feature me too., which will discuss Address Confidentiality Programs for survivors of domestic violence, sexual assault, stalking, and trafficking. Election Protection will also join the webinar to highlight nonpartisan voter assistance resources and how nonprofits can connect communities with trusted election support.

 

Talk to you soon,

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