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Policy Briefing

Biweekly Policy Briefing Issue XXXI: Short-Term Shifts

Hello again.

The right of foundations and nonprofits to support underrepresented communities continues to be challenged in the courts. The Council on Foundations and Independent Sector filed an amicus brief in American Alliance for Equal Rights v. Hispanic Scholarship Fund, defending the right of charitable organizations to make lawful gifts that advance their missions.

Join us to voice your priorities in Sacramento (April 7–8) for Sacramento Day, and Washington, D.C. (March 16–19) for Foundations on the Hill. Click the links for more information and to register.

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

 

THE FACTS

Budgets
  • Another partial government shutdown is almost certain after the Senate failed to pass a bill funding the Department of Homeland Security (DHS) on Thursday. Both the House and Senate are scheduled to recess tomorrow, but may return to vote if a deal is reached. A partial shutdown would also affect the Transportation Security Administration (TSA), Federal Emergency Management Agency (FEMA) and Coast Guard.
    • On Feb. 3, the president signed a bill funding three-quarters of the federal government, ending the partial shutdown that began in late January. The bill did not include funding for DHS. Congressional leaders agreed to a two-week stopgap measure that ends today to allow further negotiations over restrictions on federal law enforcement, primarily Immigration and Customs Enforcement (ICE).
    • A House Homeland Security Committee hearing Tuesday did not satisfy Democrats, who want to tie DHS funding to stronger restrictions on ICE. One key sticking point is a proposal to require federal law enforcement to obtain a judicial warrant before entering private property. Democratic leaders also sent Republican leadership a list of additional requests Feb. 4, including bans on masks, requirements to show identification, and limits on enforcement activities near sensitive locations such as schools and hospitals.
  • On Tuesday, the San Diego County Board of Supervisors approved amendments to its lobbying plan to seek state authority to place a measure before voters that would increase taxes on the wealthiest individuals and corporations.
  • SANDAG’s updated regional plan reduces previously proposed spending and shifts away from major new projects, such as the Purple Line trolley and an airport trolley connection, focusing instead on improving existing transportation infrastructure.
  • The city of San Diego faces a $16.8 million budget deficit, driven largely by delayed parking fee revenue from Balboa Park, declines in hotel tax revenue, and increased overtime costs in police, fire, and transportation departments.

Implications for funders:
Ongoing budget uncertainty at the federal, state, and local levels may increase strain on safety-net providers. Continued shutdown threats and fiscal instability create uncertainty for residents, businesses, and service providers, making it more difficult to plan, operate, and meet community needs. Check with your grantees to see if they have been impacted by local or national budget stressors. Consider making a multi-year commitment, whatever the amount, so that your grantee can plan ahead.

 

Border & Immigration
  • The Trump administration announced Thursday that it will end its immigration enforcement surge in Minnesota and scale back its presence over the next two weeks.
  • New polling shows that the majority of Americans have increased concerns that immigration enforcement efforts may be going too far.
  • Department of Homeland Security Secretary Kristi Noem held a press conference in  Otay Mesa on Thursday to highlight border security and drug enforcement efforts.
    • A week earlier, Gov. Gavin Newsom visited San Diego to highlight drug interdiction efforts by the California National Guard and California Highway Patrol, reporting $500 million in fentanyl seized since 2021.
  • On Feb. 2, the San Diego City Council passed a resolution opposing aggressive and excessive ICE tactics. The resolution also authorizes the city to support Minnesota and Illinois in lawsuits against the Department of Homeland Security (DHS).
  • A conservative YouTuber who posted viral videos alleging fraud at Somali-run daycare centers in Minnesota traveled to San Diego last week and began showing up unannounced at local daycare centers, primarily in City Heights. 
  • Last week, Rep. Juan Vargas was denied entry to the Otay Mesa Detention Facility in his district after receiving numerous complaints about conditions inside. Members of Congress have the right to inspect and conduct oversight of federal detention facilities. Facility officials provided Vargas with a letter from the Department of Homeland Security stating that seven days’ notice is required before a visit. However, a federal judge ruled earlier this month that detention centers must allow members of Congress to enter without prior notice.
  • Last Friday, the 5th U.S. Circuit Court of Appeals upheld the Trump administration’s policy of detaining individuals arrested in immigration enforcement actions without bond. The ruling affects thousands of detainees in Texas and Louisiana, with additional appeals expected in the coming weeks.
  • A federal judge blocked enforcement of a statewide ban on ICE agents wearing face masks but upheld a requirement that agents display clear identification, including their agency and badge number. The judge ruled that because the mask ban exempts state law enforcement, it discriminates against the federal government.

Implications for funders: Contact us to participate in coordinated efforts among funders to support immigrant communities in the region. Immigration enforcement is escalating nationwide, and funders can prepare by learning from developments in other states and by ensuring that grantees and staff know their rights and have rapid response plans in place. Recent enforcement efforts in Minnesota and Maine have disproportionately targeted Somali communities. San Diego’s Somali population is also experiencing an increase in surveillance, harassment, and detention. Funders should anticipate increased demand for immigration legal services, language access, and basic needs support as families disengage from systems they previously relied on.

 

Local News
  • Following a rocky rollout and declining attendance at Balboa Park and its museums, the city of San Diego expanded free parking for city residents and reduced enforcement hours to end at 6 p.m. instead of 8 p.m. Community organizations have raised strong concerns, with museums reporting an average 20% decline in visitors and some experiencing decreases of up to 40% since parking fees were implemented.
  • The city of San Diego has closed its Section 8 housing waitlist due to federal funding constraints. The waitlist currently includes 76,000 people, and no applicants have received housing assistance in nearly three and a half years.
  • On Tuesday, the Lemon Grove City Council passed a temporary ordinance requiring 120 days’ notice for no-fault evictions. The ordinance also requires landlords to provide relocation assistance equal to one month of fair market rent, with low-income and senior renters eligible for two months of additional rent support.

Implications for funders: Housing affordability challenges and constrained federal housing resources will likely increase demand for rental assistance, eviction prevention, and homelessness prevention services. Changes affecting cultural institutions may also create funding pressures for arts and community organizations experiencing reduced attendance and revenue. Compounding this pressure, changes to parking in Balboa Park will increase the city’s budget deficit and likely result in cuts elsewhere. Flexible funding is the highest priority and can help nonprofits respond to increased community needs and financial instability.

 

Other
  • A federal grand jury declined to indict members of Congress who had urged military personnel to disobey unlawful orders.
  • Environmental Protection Agency Administrator Lee Zeldin met with San Diego leaders last week to discuss the Tijuana River sewage crisis. While acknowledging potential setbacks, Zeldin pledged to continue prioritizing the issue in federal policy and funding decisions. 
  • The U.S. Supreme Court ruled that California may use the redistricting maps approved by voters under Proposition 50 in the last election.
  • The Trump administration is scaling back a major census field test from six sites to two, raising concerns about the accuracy and completeness of the 2030 census. The revised plans were published in the Federal Register on Feb. 5, with public comments accepted through March 5.  
  • The House passed the SAVE America Act on Wednesday. The bill would significantly impact voting rights and require proof of citizenship to register to vote, eliminate mail-only voter registration and mandate photo identification nationwide. The measure must still pass the Senate, where it faces significant procedural hurdles.
  • The EPA revoked the 2009 scientific finding that underpins US efforts to address climate change on Thursday. Greenhouse gases are regulated under the Clean Air Act based on the government’s determination that they pose a public health threat. Legal challenges are sure to follow quickly.

 

Takeaways & Resources

  • Join the Catalyst Data Hub for a comprehensive and transparent look at the regions’ giving landscape.
  • Check out an overview of federal funding in San Diego for the last fiscal year.
  • See what is shifting in our local nonprofit ecosystem: The 2025 State of Nonprofits and Philanthropy is now live! Check out the learnings here.
  • See testimony from the House Ways and Means Committee hearing on Tuesday exploring foreign influence in American nonprofits. While contentious, there was some bipartisan agreement on the need for greater transparency. 
  • Hear creative ways leaders are responding to federal funding cuts in the US and internationally. Join the Center for Effective Philanthropy at A Sector in Crisis: How Nonprofits and Foundations Are Navigating Challenge on February 19. 
  • Explore how to engage strategically during the budget cycle: Join Philanthropy California on February 19 for a timely funder conversation to learn more about the Governor’s proposed budget, key areas of concern and opportunity for the sector, and what is at stake for the state and communities.

 

Talk to you soon,

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

Hello again.

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

 

THE FACTS

SUBTITLE
  • ​​​​​​

TAKEAWAYS

 

RESOURCES

 

Talk to you next week,

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