President Donald Trump’s “Big Beautiful Bill” has defunded San Jose nonprofits assisting low-income residents facing eviction. Service providers have been notified that continued funding is not assured, affecting organizations such as the Law Foundation of Silicon Valley and its partners.
The issue matters because these federal cuts threaten essential legal, housing, and food assistance programs for vulnerable populations in San Jose. Nonprofits could lose up to $8.9 million due to reductions in two U.S. Department of Housing and Urban Development programs: Community Development Block Grant and HOME Investment Partnership.
San Jose Housing Department spokesperson Jeff Scott said, “Nonprofits that continue such programs do so without the guarantee of future payment. Alternatively, they may pause programs. A 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.”
Mayor Matt Mahan confirmed that uncertainty at the federal level has forced the city to delay signing agreements with nonprofits. According to Mahan, “We’re 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. We will save money and lives in the long run by ending unsheltered homelessness.”
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. Chagolla said, “It’s 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. There’s a real need and demand for these services for the community.”
Second Harvest of Silicon Valley CEO Lesie Bacho called the new federal cuts “the largest carveout ever to food assistance programs.” Bacho said, “It’s the equivalent at the national level of about 9.5 billion meals a year, and that cut alone is more than the entire charitable food system provides today.” Kyra Kazantzis, CEO of Silicon Valley Council of Nonprofits, said “The administration is hitting nonprofits in particular ways. It’s impacting nonprofits that are serving vulnerable folks without federal funding, as well as nonprofits that are funded by the federal government.”
