Week of April 2, 2026 | Valix Collective

The ground is shifting under nonprofit leaders' feet this spring. As H.R. 1's Medicaid provisions begin rolling out, with the enhanced FMAP sunsetting in January and eligibility redeterminations now required every six months, California is racing to build a state-level safety net. Meanwhile, new doula funding and a landmark HUD budget offer bright spots for organizations positioned to act. Here's what you need to know.

The final FY2026 Transportation-HUD spending bill delivers $77.3 billion to HUD, a $7.2 billion increase over FY2025 and a decisive rejection of the administration's proposed 44% cuts to housing programs. Homeless Assistance Grants received a $366 million boost to over $4.4 billion, and tenant-based rental assistance rose by $2.4 billion to $34.9 billion. For nonprofit housing providers, this means renewed stability: the bill requires HUD to renew Continuum of Care (CoC) grants expiring in Q1 2026 for 12 months and sets a timeline for renewals throughout the year. What to do: If your organization holds a CoC grant, confirm your renewal status with your local CoC lead. If you've been considering applying for HUD funding, this is the most favorable budget environment in years.

Sources: National Low Income Housing Coalition · Bipartisan Policy Center

The "One Big Beautiful Bill Act," signed July 4, 2025, is now in full implementation. The law cuts federal Medicaid funding by $1 trillion over 10 years, a 15% reduction. The Congressional Budget Office estimates 11.8 million people will lose Medicaid coverage directly. For California, this translates to roughly $30 billion per year in lost Medi-Cal funding. Key 2026 milestones include the January 1 sunset of the enhanced FMAP that incentivized Medicaid expansion, and by December 31, states must conduct eligibility redeterminations every six months. What to do: Health-focused nonprofits should assess which of your clients rely on Medicaid and begin planning for coverage gaps. Build relationships with enrollment navigators now.

Sources: California Health Care Foundation · Georgetown Center for Children and Families

Federal behavioral health and community health funding remains robust. SAMHSA receives $7.4 billion for FY2026, including a $65 million boost covering opioid and mental health block grants and a $20 million increase for State Opioid Response programs. HRSA's Community Health Center Fund is set at $4.6 billion, the largest increase in a decade, supporting approximately 1,400 health centers at over 15,000 sites. The Certified Community Behavioral Health Clinic (CCBHC) expansion program obligated over $367 million in 2026. What to do: Check the SAMHSA Grants Dashboard for open NOFOs. CCBHC planning and implementation grants remain a strong opportunity for behavioral health providers.

Sources: SAMHSA Grants Dashboard · OpenGrants

California's CalAIM waiver, the state's sweeping Medi-Cal transformation initiative, expires at the end of 2026 and faces an uncertain future. The program, which expanded Medicaid to cover housing supports, community health workers, and social determinants of health, requires federal renewal through 1115 and 1915(b) waivers. The Trump administration has not indicated whether it will approve renewal, and CMS has already signaled it will no longer approve a key funding mechanism that supports CalAIM. Counties are estimated to receive over $4 billion through the Behavioral Health Services Fund in 2026-27, but sustained federal partnership remains unclear. What to do: Organizations relying on CalAIM-funded services should develop contingency plans. Engage with your county behavioral health department to understand local impacts.

Sources: CalMatters · Center for Health Care Strategies

Sen. Jerry McNerney (D-Pleasanton) introduced SB 1240 to establish an Office of Nonprofit Empowerment within the Governor's office, a centralized hub to help nonprofits access state resources and navigate government processes. This comes alongside AB 1039 (Hart), which requires all new state grants and contracts beginning January 1, 2026 to provide advance payment to nonprofits, and AB 1318 (Bonta), which broadens the definition of "qualified nonprofit organization" to include state tax-exempt status. What to do: Support these bills by contacting your state legislators. If you've struggled with delayed state reimbursements, AB 1039's advance payment requirement could be transformative for your cash flow.

Sources: Davis Vanguard · CalNonprofits

California continues to invest in addressing Black maternal health disparities. San Bernardino County allocated $2.72 million for Black Infant Health and the Perinatal Equity Initiative, including no-cost doula services, fatherhood programs, and maternal mental health care. Separately, $480,000 was directed to community doula services through partnerships with the California Black Women's Health Project and Sankofa Birthworkers Collective. The Freedom to Birth Act (AB 55), effective January 1, removed barriers to Medi-Cal reimbursement for doula services statewide. In the Central Valley, the Transforming Maternal Health Model brings $17 million to five counties. What to do: Organizations providing doula or perinatal services should ensure they are enrolled as Medi-Cal providers to access the new reimbursement pathways.

Sources: Precinct Reporter Group · Governor's Office

San Francisco's Department of Homelessness and Supportive Housing operates on a $786 million budget, funding nearly 4,000 shelter beds and over 19,500 housing beds through nonprofit contracts. The Board of Supervisors is pressing for homeless shelters in all 11 districts, with an ordinance requiring at least one new facility per district by June 30, 2026. At the same time, the city is tightening oversight of nonprofit contractors following cases of fund misuse and service delivery failures. The Homelessness Oversight Commission may absorb responsibilities from other commissions to centralize accountability. What to do: Nonprofit homelessness providers should review and strengthen their compliance and reporting processes. Organizations in districts without current shelter facilities may find new contracting opportunities.

Sources: SF Standard · Local News Matters

Several major Bay Area funders have active or upcoming funding cycles. The San Francisco Foundation's Rapid Response Fund for Movement Building offers quick-turnaround grants for frontline social justice organizations. Kaiser Permanente Northern California's Regional Community Grants Program supports nonprofits focused on health care access, mental health, and community safety. The Fleishhacker Foundation's Small Arts Grants (proposals due July 15, 2026) provide unrestricted support to small and mid-sized arts organizations in SF, Alameda, and Contra Costa counties. The SF Arts Commission's FY 2025-2026 grants provide up to $145,000 for community-focused arts access. What to do: Review the San Francisco Foundation and Kaiser Permanente grant portals for current deadlines. Arts organizations should begin preparing Fleishhacker Foundation proposals now.

Sources: San Francisco Foundation · Fleishhacker Foundation

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