Biweekly Policy Briefing Issue XXVIII: Safety Net Under Strain

Hello again.

It has been our privilege to bring you this concise—often dense!—view of the shifts shaping our communities throughout 2025. The House adjourns today until January 6, and the Senate will adjourn December 22 and return on January 5. We look forward to being back with you in 2026; our biweekly policy briefings will resume January 16.

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

THE FACTS

NONPROFITS & THE SAFETY NET

• After weeks of contentious debate following the shutdown, Congress will adjourn for the holidays without resolving the looming healthcare affordability crisis. The final votes of the year were held Thursday, but lawmakers failed to reach an agreement on subsidies set to expire on December 31.
  • Moderate Republicans, led by Pennsylvanian Rep. Brian Fitzpatrick, joined Democrats on Wednesday in a petition to force a House vote on a three-year extension of the subsidies. However, no vote will happen until January, after the subsidies have already expired.
  • Once the subsidies expire, health care premiums are expected to double for millions of Americans. Consumers are already seeing the cost increases during open enrollment. Data breaking down subsidy recipients by congressional district shows that across San Diego and Imperial counties, an estimated 3% to 4% of the total population – well over 100,000 people – receives premium subsidies.
• Last week, the San Diego Housing Commission voted to increase the percentage of income that residents receiving Section 8 assistance must contribute towards rent, from 24% to 40%. The federal government must sign off on the new rule. Commission officials said that without the increase, they would need to pause assistance for 1,700 families to address a budget shortfall. 
• On Tuesday, the House Committee on the Judiciary held a hearing on the Southern Poverty Law Center, accusing the organization of targeting conservatives and infringing on free speech and free association. The hearing continues a broader pattern of congressional scrutiny of nonprofits opposed to Trump-era policies and efforts to characterize their constitutionally protected speech as domestic terrorism.
• On Thursday morning, Health and Human Services Secretary Robert F. Kennedy Jr. announced that the department will publish a new proposed rule banning all federal funding for hospitals that provide gender-affirming care to anyone under the age of 18. The rule will include a 60-day public comment period once released.
  • The announcement follows HHS’ termination of several multi-million dollar grants to the American Academy of Pediatrics, including funding for programs supporting children with birth defects, mental health services, and rural health care access. HHS cited the organization’s use of racial disparity frameworks and the term “pregnant people” as inconsistent with the administration’s priorities.

Implications for funders: Community members will begin to see their healthcare costs rise dramatically, deepening pressure points on community safety-net providers. Some may decrease their benefits, unenroll altogether, or have to choose which other bills not to pay to pay their health care premium. Funders may need to prepare for higher demand for food assistance, more transparent public-health communication, and support for families facing potential coverage gaps.

​​​​​​

BORDER & IMMIGRATION

• This week, the Trump administration announced plans to significantly increase the number of denaturalizations. Denaturalization occurs when a naturalized U.S. citizen is stripped of their citizenship, typically for having illegally gained citizenship or misrepresenting facts during the application process. 
  • The Immigrant Legal Resource Center notes that denaturalization has historically been rare, averaging about 11 cases per year from 1990 to 2017, with a modest increase to roughly 25 per year during the first Trump Administration. 
  • New guidance to the U.S. Citizenship and Immigration Services directs field offices to refer 100 to 200 potential denaturalization cases per month.
• A federal judge has indicated he may allow Immigration and Customs Enforcement (ICE) to access Medicaid data of immigrants. In California, state funds cover health insurance for residents who don’t qualify for federal Medicaid due to immigration status, raising concerns that personally identifiable information could be used to target individuals for deportation.  
• Last week, the Trump Administration announced that 760 acres of public land in San Diego and Imperial Counties will be transferred to the Navy and designated as a militarized zone. The change allows the military to play a larger role in immigration enforcement within the area and increases penalties for undocumented immigrants detained on the land.  
• On Monday, the United States and Mexico signed an agreement aimed at addressing the Tijuana River sewage crisis. While the agreement includes provisions that were missing from previous efforts, funding for the proposed projects remains unresolved. 
• Last Friday, local leaders announced the formation of the CaliBaja Higher Education Consortium, which seeks to increase the number of academics across the border in both directions. The consortium is made up of 17 institutions with UC San Diego and San Diego State University serving on its board. The Consortium aims to “amplify talent, spark joint innovation and foster shared prosperity that will benefit our entire binational region.”
• As of December 15, all applicants for H-1B visas and dependent H-4 visas are required to set their social media profiles to public view to allow for an “online presence review.”
  • On Wednesday, the administration released a proposed rule that would require visitors to the United States from visa-waiver countries to submit over five years of social media history as a condition of entry. The rule is open for public comment through February 9.

Implications for Funders: Rapid legal and policy changes are increasing uncertainty and need within immigrant communities. Funders can help by supporting immigrant rights organizations, legal aid providers, community education efforts and initiatives that ensure safe access to services, while closely monitoring evolving federal, state and local policies affecting vulnerable populations.

LOCAL NEWS

• SANDAG adopted its 2025 Regional Plan last week. The plan relies on voters passing two proposed sales tax increases and could be affected by projected budget deficits at the Metropolitan Transit System.
• Last week, the City of San Diego launched its Neighborhood Homes for All of Us plan and is seeking public input. The plan seeks to adjust zoning laws in the city to allow more than one home on parcels currently zoned for single-family use near public transit. This would allow building small cottages, duplexes, townhomes, or small multi-family buildings in areas typically reserved for higher-cost single-family housing.
• TED announced this week that it will base its annual speaking series in San Diego beginning in 2027. The organization plans to hire locally and design a place-specific event using San Diego venues beyond traditional convention centers, including local universities, outdoor locations, and aircraft carriers.
• Just over a week after Sen. Steve Padilla called for a public review of the proposed data center in the city of Imperial, the city has sued to force the review. The lawsuit would overturn county approval and block the developer from moving forward until the project undergoes public input and environmental review.
  • More than 200 organizations nationwide have signed a letter urging Congress to halt new data center development in the United States until appropriate regulations are in place.
• The San Dieguito Union High School District has approved new oversight rules for school foundations following several controversies at one of their schools. The updated memorandum of understanding caps administrative fees at 10% and places the district in charge of any non-school-related facility rentals.
• The County of San Diego will end numerous behavioral health contracts, some on December 31 and others on June 30 next year, as California’s Proposition 1 takes effect. The new rules impose more restrictions on how funds may be used, de-emphasizing prevention services like caretaker support and suicide hotlines.
• To end on a note of joy: San Diego Symphony CEO Martha Gilmer was named Musical America’s Impresario of the Year on Tuesday. She is only the second person in the publication’s 127-year history to receive this rare honor. Features editor Fred Cohn noted, “Being a community resource is essential for a contemporary musical organization, and that is something Martha clearly understands.”

Implications for Funders: In addition to national advocacy, community engagement in local plans, policies and decision-making remains critical to the region’s well-being. Community organizations may benefit from funding to educate and organize residents, alongside direct service and program support. While outcomes can be more difficult to measure, enabling residents to influence their government can yield long-term benefits.

OTHER NEWS

• On Wednesday, the Senate passed a $900 billion defense bill with bipartisan support. The measure includes a provision that could require the president to release unedited footage of strikes involving Venezuelan vessels. The bill also places limits on efforts to reshape U.S. foreign policy toward Europe and includes continued support for Ukraine. 
• A federal judge ruled that the National Guard can remain in Washington, D.C., pending a Supreme Court decision on the legality of its deployment.
• President Trump addressed the nation on Wednesday, making several false claims that have been fact-checked by numerous media outlets.
  • During the address, he announced $1,776 payments to more than 145,000 members of the military (described as a “warrior dividend”) as part of a bid to counter concerns about rising affordability pressures nationwide.
• Last week, Indiana Republicans rejected the president’s call for nationwide redistricting efforts to benefit the GOP. In Indiana, 21 Republicans joined Democrats to vote down a proposal to redraw the state’s maps. In the redistricting battles across the country, six states have redrawn maps that could result in adding nine Republican seats and six Democratic seats, while five additional states are considering changes.
  • In California, a three-judge panel is scheduled to hear arguments on Monday on a request to issue a temporary restraining order against new congressional maps approved by voters as Proposition 50 in November. The U.S. Justice Department and the California Republican Party argue the maps illegally favor Hispanic voters.
• The Supreme Court heard oral arguments in the case examining whether the president had the authority to fire Rebecca Slaughter, a former commissioner of the Federal Trade Commission. Based on remarks from the judges, the court seems to be leaning towards affirming the president’s use of executive power. A ruling in favor of the president could extend executive control over roughly two dozen agencies traditionally considered independent. 

TAKEAWAYS & RESOURCES

• Catalyst, as part of Philanthropy CA, and funders from our region joined dozens of foundations and philanthropic institutions in signing on to a letter opposing the proposed Public Charge rule change. Check out this communications toolkit from Protecting Immigrant Families. 
• Save the Date for the CA Policy Forum’s first webinar of the year on January 20, “The Redistricting Revolution: Navigating California’s New Political Landscape Post-Prop 50.”
• Encourage nonprofits to take the 2026 Fair Pay for California Nonprofits Compensation and Benefits Survey. The data collected is used to produce a report to benchmark pay and evaluate benefits. It also contributes to the 2026 CalNonprofits’ Causes Count report, which helps describe the nonprofit sector’s impact on our State economy. 
• Read Tess Thorman’s testimony about food insecurity in California delivered to the Assembly Human Services Committee and Select Committee on CalFresh Enrollment and Nutrition on December 17.
• Let us know if you want to join us at Sacramento Day on April 7 and 8 by filling out this interest form! This educational visit is your annual opportunity to hear from lawmakers and visit with legislators with full background and logistical support from our 
• Help keep San Diegans housed, fed and healthy amid unprecedented cuts to publicly funded safety-net programs by supporting the San Diego Unity Fund.

As the year comes to a close, we wish you moments of rest and joy.

Warmly,

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