San Diego County leaders today warned that federal funding freezes and new directives from Washington are already disrupting critical local services. With billions more in potential cuts still under debate, essential programs related to healthcare, housing, disaster relief, and public safety remain uncertain.

Acting Chair of the San Diego County Board of Supervisors Terra Lawson-Remer briefed the public today on the immediate and long-term impacts of recent federal decisions, highlighting how actions by the Trump Administration are already affecting County operations. You can view the full briefing HERE and read the full memo HERE. 

“San Diego County depends heavily on federal funds for critical public services. These federal dollars represent taxes already paid by San Diegans, meant to come back and support local communities,” said Chair Lawson-Remer. “But now, these resources are being withheld, delayed, or disrupted by federal actions—jeopardizing essential services thousands of residents rely on every day.”

Immediate Federal Impacts on San Diego County

Already, federal directives have:

• Stalled FEMA Grants: FEMA has placed financial holds on all open disaster relief grants—ignoring a federal court order requiring immediate reinstatement. Specifically, funding for FEMA’s Shelter and Services Program (SSP), which provides emergency shelter for newly arrived migrants, remains frozen, resulting in shelter closures and increased pressures on local homelessness response systems.

• Put Public Health Coordination and Programs at Risk. The CDC has issued conflicting directives—first ordering the termination of certain public health programs, then reversing course. This back-and-forth has created confusion for local health officials, making it harder to plan for disease prevention and emergency response. Currently San Diego County is reviewing over $30 million in remaining balances for multi-year CDC-funded projects—including the Public Health Workforce and Infrastructure Modernization Project, San Diego COVID-19 Health Disparities Project, and the County of San Diego Tuberculosis Project—to determine if recent federal directives require halting any related activities.Meanwhile, the CDC and the Agency for Toxic Substances and Disease Registry (ATSDR) have intermittently halted communication with the County on chemical exposure risks and public health emergency tracking.

• Frozen Housing Grants. The Department of Housing and Urban Development (HUD) has paused all grants to Public Housing Agencies and removed the county’s access to training, technical support, and key HUD systems for managing grants. Multiple HUD websites and support services have been taken offline, complicating local housing administration. The County has no clarity on when or if the housing resources will resume. 

"This is not speculation. This is happening now," Lawson-Remer added. "Our goal is to be transparent with the public about what’s at risk and to ensure San Diego County is prepared."

Billions More at Stake in Proposed Federal Budget Cuts

While immediate disruptions already affect County operations, additional cuts under federal consideration could have severe consequences:

• Healthcare: Medicaid cuts could affect healthcare access for approximately 900,000 San Diego County residents. Critical Medicaid waiver programs, including BH-CONNECT and CalAIM, which fund transitional housing support, addiction treatment, and mental health services, are currently under federal review. Losing these waivers would jeopardize recent County expansions in behavioral healthcare.

• Food Assistance: Proposed federal reductions to CalFresh/SNAP could impact nearly 400,000 low-income individuals and families in San Diego County, including over 130,000 children.

• Housing & Homelessness: The latest information indicates HUD is set to cut approximately $10 million to $30 million in San Diego County housing voucher funding, forcing the County to reduce or eliminate rental assistance for thousands of low-income households. Without this support, families who rely on vouchers to stay housed face a heightened risk of eviction—fueling an increase in homelessness across the region.

"We need clarity from Washington so that we can continue delivering essential services without disruption," Lawson-Remer said. "The County will continue to advocate for our residents but if federal leaders do not change course San Diegans should be prepared to see service reductions."

County Response and Next Steps

County officials are actively assessing the financial risks, working with federal and state partners, and preparing contingency plans to mitigate the impact of funding disruptions.

"San Diegans deserve stability, and our focus is making sure our work on essential priorities—from improving healthcare to addressing homelessness and improving emergency response—are protected," said Lawson-Remer. "The County has always been proactive in fiscal planning, but these sudden shifts in federal support make it harder to plan for the future."

The County will provide further updates as federal budget discussions continue.