From Maternal Health to Homelessness Funding, This Week Brings Big Moves for Nonprofits

This week delivered a mix of new funding announcements and policy developments that nonprofit leaders need to track closely. Governor Newsom released $145.4 million in homelessness funding for eight California regions, the Momnibus Act was reintroduced in Congress, and HUD's FY26 spending plan locked in a $366 million boost for homeless assistance. Here's what it all means for your organization.

The enacted FY2026 Transportation-HUD (THUD) spending bill delivers $77.3 billion to HUD, a $7.2 billion increase over FY2025. Homeless Assistance Grants received more than $4.4 billion, a $336 million increase that includes $4.01 billion for the Continuum of Care (CoC) program, plus $43 million for cost-of-living adjustments and $52 million designated for new rapid re-housing projects and services for domestic violence survivors.

Why it matters: If your nonprofit provides housing services, shelter operations, or supportive services, this increased funding creates new opportunities. Congress also required HUD to issue its FY26 CoC NOFO by June 1, 2026, and deliver funds by December 1, 2026, giving organizations a clear timeline for planning.

Action: Begin preparing your CoC application materials now. Contact your local Continuum of Care lead to understand regional priorities before the NOFO drops.

Source: Bipartisan Policy Center | National Low Income Housing Coalition

On March 20, 2026, Congresswoman Alma Adams, Congresswoman Lauren Underwood, and Senator Cory Booker reintroduced the Black Maternal Health Momnibus Act. This comprehensive legislative package addresses social determinants of health, expands the perinatal workforce, promotes maternal vaccinations, extends postpartum WIC access, and funds community-based organizations working on maternal health outcomes. Since 2023, the Black Maternal Health Caucus has secured over $200 million in new maternal health funding through appropriations.

Why it matters: Organizations working in maternal health, community doula programs, or birthing justice should monitor this legislation closely. Even before full passage, individual Momnibus provisions have historically been folded into appropriations bills as standalone funding increases.

Action: Review the Momnibus provisions relevant to your programs and consider submitting letters of support through your advocacy networks.

Source: Black Maternal Health Caucus | Georgetown CCF

Despite initial proposals from the White House and House Republicans that would have slashed K-12 education funding by up to 27%, the final Consolidated Appropriations Act of 2026 largely maintains current federal education funding levels. Title I and IDEA each received modest $20 million increases. The bill, signed on February 3, 2026, funds the Department of Education through September 30, 2026.

Why it matters: Nonprofits that partner with schools on after-school programming, youth development, or workforce training can plan with confidence that their federal funding pipeline remains stable for the current fiscal year.

Source: NAESP | School State Finance Project

On April 8, 2026, Governor Newsom announced $145.4 million in Homelessness Housing, Assistance and Prevention (HHAP) Round 6 funding for eight California regions, including Santa Clara County ($49.9 million) and Solano County ($4.1 million). Eighty percent of HHAP budgets must be dedicated to permanent and interim housing. With this announcement, 31 of 42 regional applications have been approved, totaling more than $724.3 million in HHAP Round 6 awards.

Why it matters: This is part of California's broader accountability framework, grantees must demonstrate progress on housing performance metrics and maintain local encampment policies consistent with state guidelines. Nonprofit service providers in awarded regions should connect with their local Continuum of Care and county agencies to position for subcontracting opportunities.

Action: If your region received funding, reach out to your local administrative entity to learn about subcontracting timelines and service delivery expectations.

Source: Governor's Office

California's CalAIM transformation continues with major 2026 milestones. The expansion of Dual-Eligible Special Needs Plans (D-SNPs) launched in 29 counties on January 1, 2026, combining Medicare and Medi-Cal benefits into unified plans. DHCS has also begun preparing its 2026 submission for the next 1115 and 1915(b) waiver renewals. Meanwhile, all managed care plans must now maintain NCQA Health Plan Accreditation and Health Equity Accreditation, with high-risk member assessments expected to begin no earlier than July 2026.

Why it matters: Behavioral health and human services nonprofits contracted with managed care plans need to understand how D-SNP integration and new accreditation requirements affect referral pathways and reimbursement. The waiver renewal process also offers an opportunity for nonprofits to submit public comments on CalAIM's direction.

Source: Center for Health Care Strategies | DHCS CalAIM

Counties will begin operating under Proposition 1's revised behavioral health funding structure in July 2026. The $6.38 billion bond, approved by voters in March 2024, funds behavioral health treatment facilities, residential care, and supportive housing for veterans and Californians with behavioral health needs. In 2026-27, counties are projected to receive more than $4 billion from the Behavioral Health Services Fund.

Why it matters: Nonprofit behavioral health providers should be tracking their county's implementation plans for Proposition 1 dollars, as this represents one of the largest new funding streams for behavioral health services in California's history.

Source: California Budget Center | LAO Housing Report

San Francisco Supervisor Matt Dorsey introduced legislation to create drug-free supportive housing options, sparking debate among housing advocates and service providers. The proposal would not make a single relapse grounds for eviction, removal would only apply when a resident's drug use is deemed "substantially disruptive" to others. The legislation responds to the fact that one-quarter of San Francisco's overdose deaths last year occurred in supportive housing complexes.

Why it matters: Nonprofit housing operators in San Francisco should closely track this legislation as it moves through the Board of Supervisors. The bill could affect lease agreements, service delivery models, and tenant rights frameworks in permanent supportive housing programs.

Source: SFist

As part of Governor Newsom's $145.4 million HHAP announcement, Bay Area regions, including Santa Clara County, received approximately $54 million in homelessness funding. The awards support interim and permanent housing, outreach, and supportive services aligned with the state's accountability requirements.

Why it matters: Bay Area nonprofits providing homelessness services should engage with their county's HHAP spending plans and explore subcontracting opportunities. These dollars come with stronger performance metrics than prior rounds, so organizations should be prepared to demonstrate measurable outcomes.

Source: Claycord | Local News Matters

Compiled by the Valix Collective Policy Intelligence Team | April 13, 2026