The Trump Administration’s efforts to slash $2 trillion in federal spending could lead to more painful cuts for the County of Santa Clara, which relies on federal funding for about a third of its $12 billion budget.
In a recently published memo, officials sounded the alarm that, if accurate, deficit projections could precipitate major cuts to social services spending.
Without taking the potential for Trump spending cuts into account, the County indicated that general fund revenues are expected to fall short by approximately $37 million through June 2026. However, if federal cuts materialize, this figure could balloon substantially with estimates ranging from $100 million to $500 million.
In an effort to address the existing structural budget deficit, the County Executive’s Office recommended reducing one-time grants to community organizations in each Supervisorial District from $1 million to $500,000. But even that might not be enough.
With many funding mandates for many programs and services, Supervisors will likely be forced to weigh difficult and politically painful cuts later this year. This comes after the County managed to close a $251 million structural budget deficit last year.
A final budget proposal is slated for May with the Board of Supervisors voting on the matter in June.