July 24, 2025

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Budget Cuts Threaten California’s Homelessness Gains

Governor Gavin Newsom this week touted preliminary 2025 data showing early declines in homelessness across California, even as the new FY 2025–26 budget eliminates the state’s flagship Homeless Housing, Assistance and Prevention (HHAP) program.

Preliminary counts report a 0.45% rise in unsheltered homelessness—far below the 7% national increase—and overall growth capped at 3%, with Los Angeles County down 4% and San Diego County down 7%.

California State Association of Counties (CSAC) warns that removing $300 million–$1 billion in annual HHAP funds could reverse these gains without stable, long-term investments.

California Sees Rise in Maternity Ward Closures, Threatening Local Birth Safety

California is losing local maternity wards at three times the national rate, with nearly 60 labor and delivery units shuttered since 2012—30% of them in Los Angeles County. These closures are forcing pregnant patients into overcrowded emergency rooms and longer ambulance rides, where untrained staff may miss critical obstetric emergencies.

Key factors behind the trend include stagnant obstetric reimbursement, declining birth rates, and a housing crunch pushing families away from cities. Efforts like California’s AB 2490 (vetoed by Gov. Newsom), the federal Rural Obstetrics Readiness Act, and Keeping Obstetrics Local Act aim to bolster emergency training and funding, but closures continue, leaving communities without safe, nearby birth care.

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Cal State’s Budget Gap Expands to $2.3 Billion

SACRAMENTO — California State University leaders disclosed at this week’s Board of Trustees meeting that the system’s cumulative budget shortfall has ballooned to $2.3 billion, up sharply from $1.5 billion two years ago.
Despite a 6% tuition increase last year and an influx of state support, Cal State still fell $144 million short in funding, prompting a zero-interest loan offer from lawmakers and sparking disputes with unions over pending raises.
With over 1,200 positions eliminated, 7% fewer student-support staff and 1,400 courses cut, campuses warn that continued underfunding will force deeper program reductions—even as enrollment demand climbs.

Parents Unaware as California Rolls Out TK for All Four-Year-Olds

This fall, California will make transitional kindergarten (TK) universally available to 4-year-olds as part of a statewide expansion launched in 2021. However, a Stanford Center on Early Childhood survey finds only 65% of parents with children under 6 have heard of the program—a sharp decline from 83% in 2021.

Parents’ lack of awareness threatens to leave seats empty and deepen enrollment inequities. Experts say the decentralized nature of early childhood care—spread across daycares, home settings and preschools—means districts and the state must mount fresh, broad outreach campaigns each year to meet their TK enrollment goals.

CalFresh Cuts Could Double SLO Food Bank Demand

SAN LUIS OBISPO, Calif. — The newly enacted federal One Big Beautiful Bill slashes SNAP funding by 20%, wiping out $186 billion nationally and restricting CalFresh eligibility for able-bodied adults and other vulnerable groups. In San Luis Obispo County, where 31,000 residents now rely on CalFresh, SLO Food Bank CEO Molly Kern says monthly demand could double from 44,500 to nearly 90,000 by 2027.

Key impacts include:

Removal of benefit waivers for veterans, foster youth and homeless adults, threatening to cut 428,000 California children and 243,000 adults off aid

A $661 million shift in administrative costs to California in 2026 and a potential $2.5 billion state SNAP share by 2027

Local nonprofits like Meals That Connect face funding shortfalls—up to $600,000 lost this year—and are already narrowing eligibility as senior hunger rises.

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Budget Cuts Threaten California’s Homelessness Decline