State hearing spotlights 2026–27 CSBG plan and warns of federal funding threats

At a special joint oversight hearing of the Senate and Assembly Human Services Committees, state and local officials reviewed the 2026–27 Community Services Block Grant (CSBG) state plan and described how CSBG funds are used across California — while warning that proposed federal budget actions could reduce or eliminate that funding stream.

Jason Wimbley, director of the California Department of Community Services and Development (CSD), told the committee that CSBG is a flexible federal anti‑poverty funding stream that the state administers and that in federal fiscal year 2025 California was allocated $68,400,000 in CSBG funds. Wimbley said California’s CSBG network served roughly 1.5 million low‑income residents last year and that CSD partners directly with 60 organizations across 58 counties to deliver services ranging from housing and employment supports to emergency and disaster response.

The state plan describes how CSD and local community action agencies use CSBG to address housing, employment, food insecurity, health care access, transportation and asset building. Wimbley emphasized local tailoring and the tripartite governance requirement for CSBG agencies, and highlighted a local example: King’s Community Action Organization helped convert a motel into Sunrise Apartments under California’s Project Homekey to create permanent supportive housing in Hanford.

Advocates and providers on the panel described how CSBG functions as both a safety net and a capacity lever. David Knight, executive director of the California Community Action Partnership Association (CalCAPA), said ROMA (Results Oriented Management and Accountability) is a core performance framework: “ROMA is not just a federal requirement. It’s a tool our agencies use to ensure we are getting clear goals, tracking measurable outcomes, and continuing improving services.” Mary Alice Esgarciga Fechner, executive director of Community Services and Employment Training and board chair of CalCAPA, described CSBG as “the lifeline connecting those struggling in poverty to essential resources,” and urged continued stable funding.

Local agency leaders described services and outcomes from diverse regions. Contra Costa County Director Dr. Marla Stewart said Contra Costa’s CSBG allocation of just under $1 million supports 11 community‑based partners; last year, she said, CSBG funding helped 3,600 households avoid utility shutoffs and helped 141 people experiencing homelessness obtain housing. Madison Flynn, chief executive officer of the Northern California Indian Development Council (NCIDC), described California’s American Indian set‑aside within CSBG and said NCIDC receives roughly $2 million to serve tribal communities statewide, assisting about 20,000 Native people directly last year. Proteus Incorporated CEO Michelle Engel Silva said Proteus receives about $2.5 million in CSBG that helps leverage roughly $20 million in additional funds and reported that last year the agency helped 285 youth and 853 adults obtain employment and prevented 422 evictions.

Panelists also outlined how CSBG providers respond to disasters and new policy tools. Wimbley described CSBG‑funded supply distributions and local agency operations during a Los Angeles wildfire response, including distribution of diapers, air purifiers and K95 masks and assistance with FEMA documentation. Knight and local agencies described coordination with CalAIM community supports and the importance of aligning billing, performance targets and capacity when agencies participate in Medicaid‑related reforms.

Speakers underscored the uncertainty of federal funding. Wimbley and multiple panelists noted that recent presidential budget proposals sought to eliminate CSBG funding; Wimbley said the Senate Appropriations Committee voted to fully fund CSBG at 2025 levels but that final congressional action remains pending. Contra Costa and other providers described contingency planning — from budget tightening to potential staff reductions — should CSBG be reduced or cut, and county staff stressed counties generally lack local funds to replace federal and state program dollars.

Committee members invited written testimony and public comment. A public commenter asked the committee to ensure California community action agencies comply with state open‑records requirements and to review local agency accountability; the committee accepted the written submission for the record.

Why it matters: committee members and witnesses framed CSBG as a flexible, locally administered funding source that supports emergency response, basic needs, workforce development and long‑term anti‑poverty strategies. Witnesses warned that proposed federal cuts would force service reductions, layoffs and reduced capacity to leverage other federal and private funding. The hearing closed with lawmakers and advocates urging continued federal and state support of CSBG and related programs to preserve services for vulnerable Californians.

What’s next: CSD will submit the 2026–27 CSBG state plan to the U.S. Department of Health and Human Services and continue working with CalCAPA and local agencies on implementation. Federal appropriations for CSBG remain subject to congressional negotiation; panelists said they will continue contingency planning and outreach to policymakers.