Our Community at Risk

Photo caption: A mother, who is an undocumented farmworker in the Pajaro Valley, sits and speaks with a case manager at a recent food distribution in Watsonville. Credit: Kevin Painchaud/Lookout.

The sweeping changes in the H.R.1, federal tax and spending bill (the "One Big Beautiful Bill Act") signed in July 2025—paired with new Executive Orders and state and county budget decisions—are creating an unprecedented crisis for nonprofits and the people they serve. The hardest hit will be our neighbors who already live close to the edge: older adults, immigrants, low-income families, and those struggling with health challenges.

We are at a crossroads. Either we act to fill the most critical gaps—or thousands in our community will lose access to the essentials of health, food, and safety.

What's at Stake

Reduced Access to Healthcare

• Massive Medi-Cal funding cuts: New eligibility rules, enrollment freezes, work requirements, and cost-sharing fees mean thousands—especially immigrants—will lose coverage. Our Federally Qualified Health Centers will lose reimbursement for over 10,500 undocumented individuals in our community -

• Dental benefits eliminated for approximately 5,000 local undocumented patients, and up to 18,000 people overall.

• Federally Qualified Health Centers will see reimbursements slashed by approximately two-thirds, for undocumented community members with Medi Cal potentially reducing service lines (July 2026). Our farmworker families are especially impacted

• The closure of Planned Parenthood’s Westside clinic leaves a gap in reproductive and primary care access.

• Cuts will phase in starting January 1, 2026, deepening over the next several years.

Food Insecurity on the Rise

• USDA funding cuts mean less food for food banks and pantries—and inflation makes every grocery dollar stretch less.

• Stricter CalFresh/SNAP requirements and new exclusions for undocumented residents will push more families into hunger.

• County budget cuts to Meals on Wheels have created waitlists for seniors.

• Fear of ICE raids has kept many in the Latino community from accessing free food programs.

Seniors Losing Lifelines

• Reduced funding for home-delivered meals, senior day services, and resource navigators will increase hunger, isolation, and unsafe living situations for older adults.

• Cuts to Medicare counseling programs leave seniors without help navigating complex healthcare choices.

Immigrant Communities Under Strain

• Expanded ICE operations and the chilling effect of public benefit restrictions are keeping people from seeking care, food, and public services.
• Local immigrant-serving businesses are losing customers.
• Legal aid and citizenship application support programs are facing surging waitlists.

The Ripple Effect

When people lose access to healthcare, food, or safety-net programs, the consequences ripple outward:

• Higher emergency room costs

• Poorer health outcomes due to lost access to preventive care

• Worsening chronic illness

• Increased hunger

• Reduced economic activity

• Lower overall quality of life for everyone

What Local Nonprofits Are Facing

• Demand is rising while budgets shrink.

• Staff are spending more time on compliance paperwork and less on direct services.

• Clinics are seeing more uninsured patients with fewer resources to serve them.

• Food programs are forced to shrink portions or limit variety.

• Layoffs are looming for critical staff if new revenue sources aren’t found.

How Local Philanthropy Can Help

Now is the moment for local funders to stand together. Philanthropy can’t replace government funding—but it can soften the blow, buy time, and keep critical lifelines intact.

You can:

• Fund essential outreach and services in the face of new restrictions—especially in immigration support, food access, and senior care.

• Provide flexible, rapid-response funding that allows nonprofits to adapt to shifting needs and keep staff in place.

• Join advocacy efforts to protect nonprofit capacity and safeguard our community’s safety net.

This Is a Call to Collective Action

Our county has built one of the strongest safety nets in California. But safety nets only work if they’re there when we fall. Without immediate, coordinated philanthropic support, thousands will slip through.

We can meet this challenge—if we move together, and move now.