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Alameda County officials warn federal FY26 budget and reconciliation could cut Section 8 vouchers and local HUD grants

Alameda County Board of Supervisors Personnel Administration and Legislation Committee · June 2, 2025
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Summary

County staff and outside legislative consultants told the Board'committee that the White House FY26 "skinny" budget and House reconciliation measures could cut HUD and safety-net programs, potentially costing Alameda County thousands of Section 8 vouchers and shifting homelessness grants to the state, officials said.

Alameda County officials told the Personnel Administration and Legislation Committee on June 2 that the White House'proposed FY26 budget and the House'passed reconciliation package could significantly reduce federal funding that supports housing and homelessness programs in the county.

The county's housing lead, who was identified in the meeting as Director Starrett, said about 22,000 Alameda County households currently receive Section 8 assistance and estimated that proposed cuts could result in 8,000 to 9,000 families losing their vouchers. "22,000 families receive Section 8 assistance either tenant based or project based vouchers," the director said, adding that a loss of 8,000'9,000 vouchers would be "huge" and would disproportionately affect small "mom and pop" landlords who rely on steady federal payments.

Why it matters: County staff and outside consultants said those reductions would immediately affect housing stability for low-income residents and could increase eviction filings and strain court capacity. Staff also cautioned that proposed changes to how HUD distributes grants could strip local control over homelessness funding decisions.

John Assini of CJ Lake, the county's federal consultants, explained the federal timeline and the legislative mechanics that will shape which programs survive. He described the White House's "skinny" FY26 request as a nonbinding blueprint and said the administration proposed roughly $160 billion in cuts to nondefense discretionary programs while seeking increases in defense spending. Emily Bauke De Silva (CJ Lake) emphasized that the request informs appropriations work but does not become law on its own.

Director Starrett said the president's earlier budget document proposed eliminating Community Development Block Grants (CDBG) and HOME grants, moving the Emergency Solutions Grant (ESG) to the state, and cutting Continuum of Care funding. "In the president's earlier skinny budget, he proposed completely eliminating community development block grants and HOME," the director said, adding that staff understood HUD had discussed block-granting remaining homelessness funds to states, which would reduce local control.

Staff described ongoing coordination with the county's congressional delegation. Committee members said the county will continue formal advocacy and prepare materials for the full Board. "We are sharing those with our delegation, as well, just so they can see, and they can talk about it when they're on the floor," Emily Bauke De Silva said. County staff reported they had met with Representative Latifa Simon and other federal staff to explain program impacts.

County options: Officials said immediate local mitigation is limited because the impacts largely fall on housing authorities (the City of Oakland, the county housing authority, and the housing authorities for Alameda, Berkeley and Livermore). Director Starrett said smaller housing authorities must pause new vouchers or new leases when funding declines and cannot absorb large cuts.

Officials urged the Board to record opposition to provisions that would reduce safety-net funding and to continue coordination with state and local partners. There were no public speakers on the federal update at the meeting. The committee adjourned after the state update.