COUNTY APPROVES $47.4M IN UNLOCKED RESERVE FUNDING TO PROTECT FOOD, HOUSING AND EMERGENCY RESPONSE AS FEDERAL CUTS HIT SAN DIEGO
San Diego, CA — Six months after modernizing its reserve policy to align with national best practices, the San Diego County Board of Supervisors today approved $47.4 million in one-time investments under the reformed structure.
The action follows significant federal funding changes enacted last summer and a July 22 fiscal analysis estimating that H.R. 1 could expose the County to more than $300 million annually in new costs and service pressures.
“Counties don’t get to shrug when federal policies create chaos. Our job is to provide stability,” said Chair Terra Lawson-Remer. “We reformed our reserve policy so that when volatility hits, San Diego families aren’t left without food, housing, or emergency response. Today’s vote puts that framework into action.”
“We’ve recognized that neither the state nor the federal government is coming to save us,” said Montgomery Steppe. “Our reserves exist to soften the impact when the mandated resources our residents rely on are strained, and we must safeguard the programs that serve our people.”
From Federal Impact to Fiscal Reform
- July 4, 2025 — H.R. 1 signed into law.
- July 22, 2025 — Board receives analysis projecting $300+ million in potential annual local impact.
- August 26 & September 9, 2025 — Board initiates and finalizes modernization of the County’s reserve policy.
- January 28, 2026 — Board aligns use of Unlocked Reserves with the regular quarterly budget process.
- March 3, 2026 — First major implementation under the revised structure.
Under the updated reserve policy:
- Required reserve levels remain protected.
- Approximately $381 million was identified as excess unrestricted fund balance.
- No more than 25% may be appropriated in a single fiscal year.
Today’s action deploys $47.4 million in one-time funds within that annual cap.
What the Funds Support
The second-quarter deployment consists of the following one-time allocations identified in Appendix D of the Operational Plan report:
- $2.775 million – Senior Shallow Rent Subsidy
- $3.0 million – Tenant Legal Services
- $3.2 million – LGBTQ+ Housing Support
- $3.6 million – Rental Assistance (City Heights CDC)
- $350,000 – Rental Assistance (Urban League of San Diego County)
- $5.0 million – Affordable Housing Development
- $2.0 million – Supplemental Security Income Program Extension
- $1.5 million – Domestic Violence Shelter Services
- $175,000 – Community Violence Intervention
- $1.8 million – Senior Nutrition
- $1.0 million – Hunger Relief (San Diego Food Bank)
- $2.0 million – Multiple Species Conservation Plan
- $9.0 million – Critical Facility Maintenance
- $2.0 million – Assessor/Recorder/County Clerk
- $3.0 million – Registrar of Voters
- $7.0 million – Public Health Services
