To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Major Impacts from H.R. 1 and the State Budget
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
RECEIVE report on major impacts resulting from H.R. 1 and the State Budget on the County, and PROVIDE direction on next steps for analysis and implementation.
FISCAL IMPACT:
This is an informational item without any direct fiscal impacts.
However, H.R. 1 and the State Budget Agreement have major fiscal implications for the County. As a California general law county, Contra Costa County locally delivers a variety of federal and state services, including Medicaid (Medi-Cal), and SNAP (CalFresh).
BACKGROUND:
As a California general law county, Contra Costa County locally delivers a variety of federal and state services, including Medicaid (Medi-Cal), and SNAP (CalFresh). The County's operations and finances are dependent on federal and state policies because of these relationships. The 2025 federal budget reconciliation bill (H.R. 1) represents a significant shift in the relationship between the federal government and state/local governments. It introduces major fiscal and policy changes over a ten-year time frame, including reductions in access to and funding for hospitals, healthcare, food, and a variety of social safety net services.
The federal reconciliation bill includes a $911 billion cut to Medicaid (called Medi-Cal in California) and a $193 billion cut to SNAP (called CalFresh in California). These federal policies modify eligibility and benefits for low- and middle-income individuals and families, as well as immigrants. The shift in costs to state and local governments reduces overall resources and funding flexibility. Estimating these impacts, in terms of enrollment as well as costs, is challenging for a variety of reasons ranging from administrative uncertainty due to pending guidance, to general economic factors.
Timeline of ...
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