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San Mateo County adopts budget amid state and federal funding uncertainty

County faces potential $1 billion funding shortfall by 2030 from state revenue withholding.

YJ
Young Jang
Source: This report is based on an official public release from San Mateo County. PULSE organizes and summarizes public government communications.

The San Mateo County Board of Supervisors adopted a $6.2 billion budget for 2026-27 designed to maintain services while preparing for expected changes in state and federal funding, according to the county.

The budget continues funding for healthcare, affordable housing, food assistance and public safety while addressing anticipated federal eligibility and work requirement changes for Medi-Cal recipients. About 52,000 Medi-Cal beneficiaries in San Mateo County will need to navigate the new requirements.

The county faces a more immediate fiscal threat from a state revenue withholding related to Vehicle License Fees. Without state action to resolve the dispute, San Mateo County and its 20 cities face a $226 million shortfall in 2025-26 that could exceed $1 billion by 2030. This could force the loss of up to 1,000 jobs, including 600 county positions, and cuts to vital programs. Board President Noelia Corzo said the budget "will allow us to continue providing the services that tens of thousands of residents rely on us for."

The state has committed to working with affected jurisdictions on a long-term solution, though the county indicated such commitments have not yet translated to actual relief.

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