Capitol Advocacy Partners
Washington, D.C. Federal Affairs Briefing: Key Developments & What’s Ahead February 3, 2026
Attachment II
2025 - The Longest Government Shutdown in U.S. History
2025 brought the longest federal shutdown in U.S. history at 43 days. — Ended in November. The Continuing Resolution funded most agencies at Fiscal Year 2025 levels through January.
Federal Appropriations
● Six spending bills signed into law: Agriculture, Military Construction, Legislative Branch, CJS, Energy and Water and Interior.
● Six funding bills pending: short-term extensions or partial shutdown of unfunded agencies possible. ● These six bills (with funding set to expire on January 30) cover more than 75% of federal discretionary spending, including the Departments of Defense, Labor, Health and Human Services, State, Transportation, Housing, and Homeland Security (DHS), the most contentious bill. ● The City’s FY26 Community Project for $381,000 for license plate readers was fully funded.
Affordable Care Act Subsidies
● Congress has not extended enhanced ACA marketplace subsidies that expired on December 31, 2025. ● A small group of senators from both parties are negotiating a compromise that could include a two-year extension with reforms like income caps, but a bipartisan agreement remains elusive. ● More than 82,000 Alameda County residents rely on subsidized plans; projections indicate 5,750 individuals could lose coverage without subsidies.
● Premiums could rise by ~$125/month per person without extension.
SNAP Program Status
● SNAP is fully funded through September 30, providing stability despite broader budget uncertainty. ● California recipients should have already received their delayed November benefits.
Key Federal Developments Impacting Hayward
● Immigration Enforcement: Trump Executive Order (EO) 14159 threatens funding cuts for “sanctuary” jurisdictions — Administration released a list of sanctuary cities – and Hayward wasn’t on it! ● Federal Agencies Directed to Review Funding Data: Starting January, Federal agencies will review all federal funding flowing to 13 states, including California, potentially leading to increased scrutiny of existing and pending funding in the effort described as a data-gathering exercise only. ● Medicaid Reform (One Big Beautiful Bill Act): $1 trillion in cuts + updated work requirements → higher local demand for housing, health, and homelessness services. ● DOGE Initiative: Massive federal staffing cuts slowing grant processing and reducing agency support. ● Grant Oversight E.O.: Increased scrutiny and risk of suspension; City must ensure strict compliance — CAP communicates each policy shift to staff.
● HUD Continuum of Care: FY25 NOFO shifts jeopardize funding for 1,400+ Permanent Supportive Housing units countywide, threatening stability for Hayward residents — CAP is engaging congressional offices to mitigate impacts.
Bottom Line: Federal cost-cutting and policy shifts are increasing local administrative burden and service demand. CAP mitigates these risks through targeted advocacy, including formal letters, legislative tracking, and 60+ meetings with congressional offices and federal agencies.
CAP’s Ongoing Federal Priorities for Hayward
1. Protect Funding & Policy Alignment – Defend sanctuary city standing; maintain compliance; safeguard current/future federal funding.
2. Pursue New Funding Opportunities
● EDA Stack Center Phase II
● Airport modernization
● Homelessness
● Youth services
3. Strengthen Federal Relationships – 60+ staff meetings with Padilla, Schiff, Butler, Swalwell, committees, and agencies; 70+ briefings; 40+ legislative position letters sent; active coordination for 2026 CPF cycle.
4. Support Active Grant Portfolio – Post-award coordination FY24 CPF St.
Regis Facility, AFG, and Prop 47 programs.
CAP keeps priorities visible in D.C. and City positioned for federal investment ● Transportation
● Water
● Behavioral-health
Delivering Results: CAP’s Impact Overview
2025 Funding Achievements = Funding added to Hayward’s budget ● $15M – WRDA (Phase II): Hayward Water Pollution Control Facility Improvements ● $1.78M – FEMA Assistance to Firefighters Grant: To train and certify 19 firefighter-EMTs as paramedics
● $1.91M – BSCC Proposition 47 Grant: Expansion of the Navigation Center to fund services for homeless, including diversion and reentry services
● $1.11M – Alameda County Youth Development Grant: Supports mentoring and youth violence prevention
● FY26 Community Project Funding – Project Wide Net: $381,000 request for ALPRs and situational awareness cameras
● CAL FIRE Wildfire Prevention Grant - Wildfire Ready East Bay: $215,040 request to reduce hazardous fuels near homes and evacuation routes, expand defensible space compliance, promote community preparedness, and support long-term resilience planning Return on Investment
● Since 2014, CAP has helped secure $34.3 million in grant funding ● This reflects an ROI of 5,394% — approximately $54 returned for every $1 invested with CAP for federal advocacy and grant services
Thank you! Questions?