LEGISLATION COMMITTEE
Meeting Date: September 22, 2025
Subject: Major Impacts from Federal Reconciliation and the State Budget
Submitted For: Legislation Committee
Department: County Administrator's Office
Presenter: E. Struthers
Contact: (925) 655-2045
Referral History:
The Legislation Committee monitors and provides direction on federal and state budgetary, legislative, and regulatory matters of interest to the County. The recently-adopted federal budget reconciliation bill, H.R. 1, includes major impacts to federal programs operated by Contra Costa County and those we serve.
Referral Update:
The recent passage of the federal Budget Reconciliation (H.R. 1) and the adoption of the State's FY25-26 Budget will result in numerous multi-year impacts to the County's operations, finances, and programs.
Federal H.R. 1 contains changes that will result in major operational impacts to the county and those we serve over the next ten years. According to the Congressional Budget Office (CBO), the majority of funding reductions are attributed to Medicaid (Medi-Cal) and SNAP (Cal-Fresh). These reductions are accomplished through numerous-often complex and inter-related-policy changes affecting eligibility, administration, reimbursement rates, benefit amounts for participants, and increasing responsibilities for state/local governments.
The federal funding reductions to these locally administered federal programs are significant. Congressional Budget Office scored the cuts to Medicaid at a cost-savings on nearly $1 trillion, resulting in the loss of health insurance coverage for an estimated 12 million Americans-including more than 3 million people in California. Additionally, H.R. 1 makes a historic 30% cut to SNAP and shifts significant costs to states, compromising the State's general fund budget along with the food and economic security of millions of people.
To implement these changes in a thoughtful way, we are embarking on a process to analyze the local impact...
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