President Donald Trump’s “Big Beautiful Bill” has defunded San Jose nonprofits assisting low-income residents facing eviction. Service providers have been put on notice that continued funding is not assured.
San Jose nonprofits like the Law Foundation of Silicon Valley and its partner organizations will lose as much as $8.9 million as a direct consequence of cuts to two US Department of Housing and Urban Development (HUD) programs: Community Development Block Grant and HOME Investment Partnership.
Those programs fund legal services and education for renters, as well as eligible homeowners incurring renovation expenses. San Jose Housing Department spokesperson Jeff Scott confirmed that nonprofits received a letter indicating program funding has not yet been received—and impacts are imminent.
“Nonprofits that continue such programs do so without the guarantee of future payment. Alternatively, they may pause programs,” he said.
“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.
“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,” he said. “We will save money and lives in the long run by ending unsheltered homelessness.”
The threat of federal funding cuts also affected the city’s 2025-2026 Annual Action Plan on housing, and the use of $23 million in previously awarded funds depends on HUD’s approval, according to budget director Jim Shannon.
The State of California’s 2025-26 budget also eliminates close to $30 million in annual Homeless Housing, Assistance, and Prevention (HHAP) program funding.
Scott said it is always difficult to predict the future impact of policy decisions with full confidence. The city is budgeting around the evolving landscape of federal government funding, he said.
In addition to the Law Foundation of Silicon Valley, nonprofits servicing San Jose tenants with legal and health services face budget challenges due to the federal funding cuts. Impacted organizations include the Health Trust and SOMOS Mayfair.
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.
“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,” she said. “There’s a real need and demand for these services for the community.”
n Jose city officials have provided the Law Foundation $800,000 annually in federal Community Development Block Grant funding for more than a decade. The money also benefited organizations under the nonprofit’s umbrella—including Asian Law Alliance, Project Sentinel and Senior Adult Legal Assistance.
“A true concern is to what extent smaller partners and organizations that serve a real need in the community will be impacted,” Chagolla said. “We help ensure that in the city of San Jose, no one is prevented from obtaining housing or removed from their housing on the basis of one of those protected categories.”
About $2.3 million in rental assistance for low-income residents living with HIV/AIDS is dependent on HOME Investment Partnership funding, as well as $2.2 million for emergency and minor repairs to low and moderate-income homeowners with the goal of preventing housing instability.
City officials said additional projects dependent on the Community Development Block Grants included $1.5 million for preservation of affordable housing units by replacing deteriorating roofs and upgrading lighting for 12 residential units and two community facilities.
Planning, Building and Code Enforcement staff say they need $1.3 million in grants to fund inspection of about 500 homes—and another $1.3 million to house its staff.
As another $350,000 earmarked to fund meals for homebound seniors is at risk, Second Harvest of Silicon Valley CEO Lesie Bacho described the new federal cuts as the largest carveout ever to food assistance programs.
“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,” she said.
Kyra Kazantzis, Silicon Valley Council of Nonprofits CEO, recently joined housing advocates in characterizing the effects of the “Big Beautiful Bill” as an attack on the housing needs of low-income residents.
She said the federal administration has targeted funding cuts toward organizations providing services unaligned with the Trump administration’s public policy agenda. This includes nonprofits focused on gender, culture and other specializations categorized as “culture war” issues.
“The administration is hitting nonprofits in particular ways,” Kazantzis said. “It’s impacting nonprofits that are serving vulnerable folks without federal funding, as well as nonprofits that are funded by the federal government.”
