Santa Ana, Calif. (April 16, 2026) – On April 14, 2026, the Orange County Board of Supervisors approved nine state budget funding priorities that support safety net programs, reduce unfunded mandates and help the County meet its goals for housing, homelessness and the Southern California Veterans Cemetery.
“Orange County anticipates a ‘perfect storm’ of fiscal pressures in 2026 due to reduced federal funding for healthcare and unfunded mandates from the state,” said Chair Doug Chaffee, Fourth District. “The Board’s state budget priorities, if adopted by the Legislature, will help ensure that the County has the tools and funding it needs to continue to serve our residents.”
“Our federal and state governments continue shifting costs for critical programs to counties, a cost too great for local governments to absorb without cutting services for our most vulnerable residents,” said Vice Chair Katrina Foley, Fifth District. “I visited Sacramento and urged our state leaders this week to step up to help blunt the impacts of federal cuts to Orange County as well as other large urban counties. We must protect Orange County resources and taxpaying dollars.”
The County of Orange, like all California counties, is dependent on revenue transfers from federal and state governments to administer programs that provide residents with health care, nutrition assistance, housing and behavioral health services. When the federal or state government decreases funding, imposes administrative mandates, or underfunds programs, local governments must assume those costs through reduced service levels or the use of limited County General Fund dollars.
“The federal administration is cutting funding to Medi-Cal and Cal Fresh while at the same time imposing onerous new administrative requirements that will likely lead to many, including seniors and disabled residents, losing services they are entitled to,” said Supervisor Vicente Sarmiento, Second District. “Orange County cannot, by itself, fill the gap left by Washington.”
“The State continues to impose mandates on local government while keeping funding for their next new bad idea,” said Supervisor Donald P. Wagner, Third District. “We need more funding to flow out of Sacramento to the communities that provide these services.”
“Sacramento continues to pass the buck to local governments,” said Supervisor Janet Nguyen, First District. “They should fund the programs they have already mandated.”
County of Orange Board of Supervisors’ 2026-27 State Budget Priorities
- H.R. 1 Budget Requests: County Eligibility Workforce Administration
- $230 million statewide in 2026-27 and $305 million in 2027-28 for training to support Medi-Cal beneficiaries.
- $9.3 million statewide in 2025-26, $102 million in 2026-27 and $57.9 million in 2027-28 to support CalFresh training requirements.
- H.R. 1 Budget Requests: County Indigent Care Program
- At least $700 million statewide in 2026-27, $2.3 billion in 2027-28 and additional likely increased support in future years as indigent health care service demands adjust.
- Additional $92.2 million statewide for local health departments.
- H.R. 1 Budget Request: County Behavioral Health
- $224 million statewide in 2026-27 and $828 million in 2027-28 for behavioral health services.
- Proposition 36 Budget Request
- $400 million statewide for Proposition 36 implementation of recovery support services and substance use treatment.
- $110 million statewide for pre-trial diversion and behavioral health rehabilitative services.
- Homeless Housing Assistance Prevention (HHAP) Budget Request
- Round 7 statewide funding of $500 million for 2026-27, an additional $500 million in the current fiscal year and $1 billion ongoing annually.
- In Home Support Services (IHSS) Budget Request
- Oppose proposal to eliminate the state’s share of cost growth for In-Home Supportive Services (IHSS) hours and shift $233.6 million in costs to counties.
- Workforce and Affordable Housing Budget Request
- Support the proposed 2026 Affordable Housing Bond for $10 billion.
- Include funding eligibility in the Housing Bond for the Local Housing Trust Fund (LHTF) and the California Housing Accelerator program.
- Veterans Service Budget Request
- Budget language authorizing the California Department of Veterans Affairs to expend funds from the Southern California Veterans Cemetery Master Development Fund for at least the first stage of project development (Preliminary Plans), and potentially the second stage (Working Drawings).
- $30 million statewide for County Veterans Services Offices (CVSOs).
- Airport Fire Budget Request
- The California Department of Forestry & Fire Protection (CalFire) to dismiss its litigation against the County for $31.7 million for fire suppression costs.
For a copy of the State Budget Priorities document approved by the Orange County Board of Supervisors, please see here: https://ceo.oc.gov/government-community-relations/legislative-affairs/legislative-platform-priorities.