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Policy Briefing

Biweekly Policy Briefing Issue XXVI: Reprieve, for Who?

Hello again.

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

 

THE FACTS

SHUTDOWN & HR 1
  • ​​​​After 43 days, the longest government shutdown in U.S. history ended on November 12 when Congress approved a deal negotiated by Republicans and centrist Democrats. The agreement funds the government at current levels through the end of January, reverses mass layoffs that occurred during the shutdown, and promises a December vote on Affordable Care Act subsidies.
  • The Senate left for Thanksgiving recess Thursday without reaching an agreement on those ACA subsidies, which were a key sticking point during the shutdown. Although Senate leaders have committed to holding a vote by mid-December, people enrolled must decide whether to keep or change their health plans by December 15, creating uncertainty for consumers and insurers. Workers with employer-sponsored coverage may also see premium increases next year.
    • This morning, four House members introduced a bill to extend Affordable Care Act subsidies for two more years, limited to people earning less than $200,000 a year.
  • Last week, the administration announced that millions of Americans would have to reapply for the food support provided by SNAP, but the USDA clarified Thursday that it will continue using existing policies.
    • Although SNAP resumed after the shutdown, millions of people are still expected to lose their benefits in the coming months as states begin complying with HR 1.
  • Also Tuesday, supervisors directed county counsel to assist with lawsuits seeking to overturn HR 1 provisions that would defund Planned Parenthood.
    • The Catalyst team met with Planned Parenthood of the Pacific Southwest during our trip to Imperial County last week. There, about 80% of the organization’s revenue is generated through reimbursement from Medicaid and other government assistance programs for providing essential healthcare services. Staff explained that they chose to keep serving Medicaid patients even though they are no longer receiving reimbursements, a mission-driven decision that has created major financial strain. Statewide, Planned Parenthood clinics have lost roughly $300 million in federal funding.
  • State help will be harder to come by as the Legislative Analyst’s Office projects a nearly $18 billion deficit for fiscal year 2026-27, including $6 billion in new spending to fill health and housing gaps left by federal funding and policy changes.

Implications for funders: While we share in the relief that the shutdown has ended, uncertainties around HR 1 and what will happen when the continuing resolution expires on January 31 continue to strain community organizations and heighten the need for flexible funding, capacity support, and advocacy investments.

 

NONPROFITS & PHILANTHROPY
  • The San Diego Foundation and County of San Diego entered a unique multi-million dollar partnership to give “breathing room” to government agencies as they respond to dramatic reductions in federal funding for food, housing, and healthcare.
    • The deal ensures that nonprofits providing critical safety-net services through county contracts can continue to meet residents’ needs
    • As local governments turn to public–philanthropic partnerships to fill safety-net gaps, funders will play a critical role in coordinating resources, supporting legal and policy efforts, and using real-time data to target emerging needs — all without replacing the essential role of government
  • On Tuesday, the City of San Diego finalized Balboa Park’s parking fee schedule. City of San Diego residents will receive discounted passes starting in January, while all other San Diego County residents will pay the same rate as out-of-town visitors. Projected parking revenue has been revised downward by about $6 million.
  • Meanwhile, the Trump administration has begun dismantling the Education Department, redistributing its responsibilities among four other agencies.
  • The Bureau of Labor Statistics will not release an October jobs report due to the shutdown. Household survey data for that month cannot be collected retroactively, so only partial October data will be included in the November report. Data collection for November will be extended, with the final jobs report of the year scheduled after Federal Reserve leaders meet in December. The September jobs report, released Thursday, showed both job growth and a slight increase in the unemployment rate.

Implications for funders: The financial and operational pressures nonprofits and educational institutions face in this moment are multi-layered. Labor market uncertainty, compounded by delayed jobs data, makes workforce planning and community support more challenging. Funders can help by providing flexible grants, supporting capacity-building, and staying informed on federal and local policy changes that affect nonprofit operations and educational access.

 

IMMIGRATION
  • The Supreme Court has agreed to hear the Trump administration’s appeal in a San Diego case involving asylum seekers who reached the San Ysidro border in 2021 but were turned away. The lower court ruled they had legally “arrived” at the border, making it illegal to deny them entry.
  • The Grossmont Union High School District declined this week to consider a resolution that would have required resources and training on immigrant rights following ICE actions near schools in other districts.
  • Meanwhile, the Vista City Council approved a policy Tuesday that implements a “Know Your Rights” campaign, bars federal law enforcement from conducting immigration enforcement on non-public city property without a warrant, and prohibits sharing sensitive information with immigration authorities.
  • Over the weekend, a large Border Patrol operation in Charlotte, North Carolina, led to more than 130 arrests. Roughly half of the city’s small businesses temporarily closed amid the crackdown and profiling, and more than 30,000 students were absent from school.
  • The Supreme Court will consider two petitions today that could alter birthright citizenship. The petitions argue that the 14th Amendment has been misinterpreted and was never intended to apply to children of temporary visitors or unauthorized immigrants.
  • New proposed Public Charge rules were released on November 19. The rule currently allows most immigrants to use certain public services related to basic needs like healthcare and housing. The proposal would essentially rescind the 2022 rule, creating significant uncertainty for immigrants about which public benefits could trigger inadmissibility (i.e., loss of the ability to remain in the United States). Public comments are due by December 19; commenting on proposed rules is not considered lobbying.

Implications for funders: Ongoing legal and policy shifts on immigration are creating uncertainty and heightened needs for immigrant communities. Changes to asylum enforcement, challenges to birthright citizenship, and proposed Public Charge rules may limit access to essential services and increase fear among families. Funders can help by supporting immigrant rights organizations, legal aid, community education programs, and initiatives that ensure safe access to services, while monitoring evolving federal and local policies that affect vulnerable populations.

 

OTHER
  • This week, the CDC updated its website to state that vaccines have not been proven to not cause autism — a move that has frustrated many in the medical community and on Capitol Hill.
  • On Thursday, news outlets reported that the U.S. Coast Guard planned changes that appeared to remove swastikas and nooses from its list of hate symbols, prompting swift backlash from lawmakers and activists. This morning, the Coast Guard issued a firmer policy clarifying that both remain prohibited hate symbols.

 

TAKEAWAYS & RESOURCES

 

 

Talk to you soon,

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