President Donald Trump\u2019s \u201cBig Beautiful Bill\u201d has defunded San Jose nonprofits assisting low-income residents facing eviction. Service providers have been put on notice that continued funding is not assured.<\/p>\n\n\n\n
San Jose nonprofits like the Law Foundation of Silicon Valley and its partner organizations will lose as much as $8.9 million as a direct consequence of cuts to two US Department of Housing and Urban Development (HUD) programs: Community Development Block Grant<\/a> and HOME Investment Partnership<\/a>.\u00a0<\/p>\n\n\n\n Those programs fund legal services and education for renters, as well as eligible homeowners incurring renovation expenses. San Jose Housing Department spokesperson Jeff Scott confirmed that nonprofits received a letter indicating program funding has not yet been received\u2014and impacts are imminent.<\/p>\n\n\n\n \u201cNonprofits that continue such programs do so without the guarantee of future payment. Alternatively, they may pause programs,\u201d he said.<\/p>\n\n\n\n \u201cA select set of agreements based on imminent and direct community needs, such as outreach to individuals experiencing homelessness and feeding extremely low-income seniors, will continue with the City assuming costs should federal funds not be made available.\u201d<\/p>\n\n\n\n Mayor Matt Mahan confirmed that uncertainty at the federal level has forced the city to delay signing agreements with nonprofits.<\/p>\n\n\n\n \u201cWe\u2019re still prioritizing urgent needs, such as outreach in homeless encampments and meal programs for extremely low-income seniors. Despite these challenges, we remain focused on building over 1,000 new shelter beds this year and strengthening outreach to bring more people indoors,\u201d he said. \u201cWe will save money and lives in the long run by ending unsheltered homelessness.\u201d<\/p>\n\n\n\n The threat of federal funding cuts also affected the city\u2019s 2025-2026 Annual Action Plan on housing, and the use of $23 million in previously awarded funds depends on HUD\u2019s approval, according to budget director Jim Shannon.<\/p>\n\n\n\n The State of California\u2019s 2025-26 budget also eliminates close to $30 million in annual Homeless Housing, Assistance, and Prevention program<\/a> funding.<\/p>\n\n\n\n Scott said it is always difficult to predict the future impact of policy decisions with full confidence. The city is budgeting around the evolving landscape of federal government funding, he said.<\/p>\n\n\n\n In addition to the Law Foundation of Silicon Valley, nonprofits servicing San Jose tenants with legal and health services face budget challenges due to the federal funding cuts. Impacted organizations include the Health Trust and SOMOS Mayfair.<\/p>\n\n\n\n Law Foundation of Silicon Valley chief program officer Cynthia Chagolla described the funding cuts as an elimination of the first line of legal defense for San Jose residents at risk of homelessness.<\/p>\n\n\n\n \u201cIt\u2019s really a safety net service for individuals who are either at risk of losing their housing or are experiencing some sort of discrimination and are prevented from even getting housing,\u201d she said. \u201cThere\u2019s a real need and demand for these services for the community.\u201d<\/p>\n\n\n\n San Jose city officials have provided the Law Foundation $800,000 annually in federal Community Development Block Grant funding for more than a decade. The money also benefited organizations under the nonprofit\u2019s umbrella\u2014including Asian Law Alliance<\/a>, Project Sentinel and Senior Adult Legal Assistance<\/a>.<\/p>\n\n\n\n \u201cA true concern is to what extent smaller partners and organizations that serve a real need in the community will be impacted,\u201d Chagolla said. \u201cWe help ensure that in the city of San Jose, no one is prevented from obtaining housing or removed from their housing on the basis of one of those protected categories.\u201d<\/p>\n\n\n\n About $2.3 million in rental assistance for low-income residents living with HIV\/AIDS is dependent on HOME Investment Partnership funding, as well as $2.2 million for emergency and minor repairs to low and moderate-income homeowners with the goal of preventing housing instability.<\/p>\n\n\n\n