County warns of major federal and state cuts; board authorizes advocacy and tracks lawsuits

County leaders told the Santa Cruz County Board of Supervisors on Tuesday that a series of federal and state policy proposals and budget moves could sharply reduce benefits and funding for local safety‑net programs.

Human Services and Health Services Agency directors described an unfolding set of changes — from new CalFresh/SNAP work requirements and eligibility restrictions to proposals that could cut housing choice vouchers and alter HUD Continuum‑of‑Care funding. Staff estimated thousands of local households could be affected: more than 7,000 CalFresh recipients might face new barriers under work requirements, and thousands of households could be at risk if voucher funding is reduced. Officials also flagged error‑penalty proposals that could expose counties to significant new fiscal liabilities in 2027 unless state or federal relief is enacted.

Board members and community partners urged urgent advocacy. The board approved staff recommendations to continue coordinated monitoring, community convenings and legislative advocacy and to authorize the chair to send letters and pursue aligned requests to state leaders. The board also unanimously approved staff work to explore joining the County Medical Services Program (CMSP) as an alternative indigent‑care model and instructed county counsel to track federal litigation and provide opportunities for the county to consider joining lawsuits or filing amicus briefs in closed session.

Boardmembers emphasized that advocacy should be strategic and that staff should return with refined fiscal impact estimates in mid‑January and midyear budget updates in February so supervisors can assess trade‑offs and budget choices.

What happens next: County staff will continue cross‑system convenings with community partners, pursue grant or contingency spending for immediate needs where possible, and report updated cost estimates to the board in February.