The week's policy landscape underscores a familiar pressure pattern for nonprofit leaders: federal pullbacks on social-service Medicaid spending and supportive housing, paired with state and local budgets scrambling to backfill the gap. Below is what executive directors should be tracking, and acting on, this week.

Category: Housing & Homelessness HUD's revised Notice of Funding Opportunity for the Continuum of Care (CoC) program limits the share of CoC dollars usable for Permanent Supportive Housing (PSH) to 30%, redirecting the balance to transitional housing and time-limited services. Advocacy groups estimate roughly 170,000 people currently housed through PSH are at risk of losing their placements as renewals come up. CoC-funded providers in San Francisco, Oakland, and across the Bay Area should immediately model their renewal exposure and brief boards on contingency plans. Action window: FY26 CoC renewal applications now in process. Source: Housing Forward, New Federal Mandates

Category: Health & Human Services CMS notified states in April that it will no longer approve the funding mechanism that has helped underwrite CalAIM's housing navigation, medically tailored meals, and other Community Supports. Existing federal money continues through 2026, but California's 1115 waiver expires at year-end and renewal terms are uncertain. Nonprofits operating ECM/Community Supports contracts should begin scenario planning for a partial or fully unfunded 2027. Action window: California's CalAIM waiver renewal submission is being prepared now; final federal action expected late 2026. Source: CalMatters, Trump Signals CalAIM May End

Category: Black Maternal Health The 14-bill Momnibus package was reintroduced in both chambers, with more than $1 billion in proposed investments across community-based maternal health organizations, perinatal workforce diversification, social determinants of health, and maternal mental health. Since 2023, $200M+ in Momnibus provisions have already moved through appropriations. Community doula programs and Black-led maternal health nonprofits should prepare advocacy materials and cultivate congressional engagement now while the package is in committee. Source: Senator Booker, Momnibus Reintroduction

Category: General Nonprofit Funding Governor Newsom's January budget projected a manageable $2.9B deficit, but his own administration's multiyear forecast shows a $23B gap for 2026-27. Counties, citing $6 to $9.5B in federal aid losses tied to the federal reconciliation bill, are formally requesting $6.4B over two years to offset the cuts. Nonprofits with state-pass-through funding (DHCS, CDSS, HCD, CDE) should expect cuts and program restructuring in the May Revision. Action window: May Revise drops mid-May; Legislature must pass budget by June 15. Source: California Budget & Policy Center, First Look 2026-27

Category: Black Maternal Health / Health & Human Services The Central California Alliance for Health is awarding up to $65,000 per organization (plus a $10,000 bilingual incentive) for doula recruitment under the Medi-Cal Capacity Grant Program. With doula services now an established Medi-Cal benefit, this is the moment for community-based maternal health nonprofits to expand workforce capacity and lock in sustainable Medi-Cal billing pipelines. Source: Central California Alliance, Doula Recruitment Program

Category: Health & Human Services Effective January 1, the non-MAGI Medi-Cal asset limit returned to $130,000 for individuals and $195,000 for couples. New Medi-Cal applications for adults 19+ who are undocumented are restricted to Emergency Medi-Cal or pregnancy-related coverage. Service providers should revisit eligibility-screening workflows and update enrollment-assistance training. Source: Sourcewise, Medi-Cal Changes January 2026

Category: Health & Human Services The Department of Public Health is implementing more than $17 million in proposed reductions to community-based behavioral health and HIV services contracts, even as the City increases its General Fund support to DPH by $307M (+40%) to offset federal/state Medi-Cal cuts. Advocates report disproportionate impacts on LGBTQ+, African American, and Chinese community providers. EDs of DPH-contracted CBOs should be in active dialogue with their program officers and board chairs about contingency funding. Source: SF AIDS Foundation, DPH Cuts

Category: Housing & Homelessness The Marin County Board of Supervisors is reviewing $810,000 in affordable-housing grants tied to Measure W (the 4% short-term rental tax passed in 2018). Bay Area housing nonprofits operating in coastal/rural geographies should monitor the award decisions as a template for similar localized funding mechanisms. Source: Local News Matters, Marin Housing Grants

The Valix Weekly Policy Brief is produced by Valix Collective for nonprofit executive directors operating across federal, California, and Bay Area policy environments.