FOR IMMEDIATE RELEASE
February 20, 2025

Sacramento, CA – California’s response to federal funding cuts could put key services provided by California counties at risk – ripping apart the social safety net and forcing cuts to sheriff’s and fire departments. 

“Counties cannot backfill for the lost dollars that would be created from a potential federal freeze,” Ventura County CEO Dr. Sevet Johnson told state lawmakers Thursday at an Assembly budget subcommittee hearing.

Speaking on behalf of the California State Association of Counties (CSAC), Johnson testified that turning to counties’ general funds to fill what could amount to a 10 percent budget deficit “is not fiscally responsible or feasible.”

(Watch Dr. Johnson’s testimony here.)

With federal cuts likely on the horizon, the state and counties must prepare for a future where critical programs and services may require alternative funding sources that are pragmatic and sustainable. 

It will be up to Gov. Newsom and state lawmakers to determine how California responds. How they do so in upcoming budget negotiations will determine whether counties can directly address voters’ top issues like crime and homelessness – or backtrack.

Federal cuts raise risks for county residents on two fronts: 

• Direct reductions to the programs they fund, primarily in safety net services like Medi-Cal, CalWORKs and CalFresh. 
• Indirect reductions to discretionary spending – such as cuts to public safety (sheriff, fire and district attorney) and homelessness.  

As Dr. Johnson and other leaders made clear during the hearing, protecting these essential programs is not just about budgetary numbers – it’s about preserving the well-being and stability of millions of Californians. 

“While counties have significant differences,” Dr. Johnson testified, “this is something we absolutely have in common.” 

BACKGROUND: 

Counties play a key role in administering federal programs that support California’s most vulnerable populations. The potential reductions to federal funding could severely affect several essential services: 

• Medicaid (Medi-Cal in California): Counties help finance and administer Medi-Cal, which serves approximately one in three Californians. Structural changes, reduced federal reimbursement rates, or new eligibility restrictions could increase costs for both the state and counties, jeopardizing healthcare access for millions. 
• Temporary Assistance for Needy Families (TANF/CalWORKs): This program provides cash assistance, work activities, supportive services, and childcare to help families achieve self-sufficiency. Cuts to TANF could have devastating consequences for hundreds of thousands of California families struggling to meet basic needs. 
• Supplemental Nutrition Assistance Program (SNAP/CalFresh): Nearly 15% of Californians rely on CalFresh benefits for access to nutritious food. Any funding reductions could increase food insecurity and economic instability statewide. 

Cuts to these vital safety net programs would have ripple effects, leading to increased healthcare costs, higher unemployment, greater interactions with law enforcement, and rising homelessness. 

In addition, if the state requires counties to keep funding these services without providing alternate funding, counties would be forced to cut spending elsewhere – such as public safety, parks, and county initiatives to address homelessness. 

California State Association of Counties (CSAC) is the voice of California’s 58 counties

at the state and federal level.
www.counties.org