Here's what's in store for Santa Clara County in 2026

"The past year ushered in a new age of fiscal challenges for the county as President Donald Trump and a Republican-controlled Congress passed legislation last summer that triggered unprecedented cuts to the federal Medicaid program. Known as Medi-Cal in California, the program provides health insurance to low-income and disabled individuals. As the operators of the second-largest county health and hospital system in the state, Trump's landmark tax-and-spending bill has left a giant hole in Santa Clara County's growing budget for the coming years."

"2025 saw the county act swiftly to respond to the challenge, placing a general sales tax increase on the November ballot to backfill a portion of the lost revenues, which make up roughly a third of the budget. Voters ultimately approved the sales tax increase, which will take effect in April. But the projected $330 million it will raise annually will only plug part of the $1 billion annual gap, placing budget challenges and health care at the forefront of the county's priorities."

"The combination of the two consumes a tremendous amount of our energy because we have a duty to take care of those most in need in our community and to do everything that we can that's within our control to help ensure that Santa Clara County residents continue to have access to critical services and that Santa Clara County residents continued to be cared for, he said."

Federal legislation in 2025 triggered unprecedented cuts to Medicaid, creating a roughly $1 billion annual funding shortfall for Santa Clara County's health and hospital system. Medi-Cal provides health insurance to low-income and disabled residents, and reductions in federal support significantly reduced county revenues. The county placed a general sales tax increase on the ballot; voters approved a measure that will raise about $330 million annually beginning in April. The tax covers only part of the shortfall, forcing difficult choices to preserve baseline services. Budget constraints will shape Board of Supervisors' policy decisions and focus county efforts on caring for the most vulnerable residents.

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