Office of Administration, Policy, and
Intergovernmental Relations
Item 3.4
2025 Spring Intergovernmental Relations Report
San José City Council 4.29.25
Presenters:
Sarah Zárate, Director, Office of Administration, Policy, & Intergovernmental Relations
Zane Barnes, Chief Intergovernmental Relations
Officer
Steve Stamos, Senior Executive Analyst, IGR
Nicholas Ochoa, Senior Executive Analyst, IGR
Lobbyist Support:
Stephanie Estrada & Nick Romo, Cruz Strategies
Leslie Pollner, Holland & Knight
Legislative Priorities
(Approved by City Council January 14, 2025)
Reduce Unsheltered Homelessness, Support Unhoused
Residents, and Increase Opportunities for Affordable Housing Enhance Community Safety Initiatives and Realize Vision Zero Advocate for Educational and Employment Opportunities that Foster Equitable Outcomes for San José Families
Drive Downtown Revitalization and Cultivate Equitable Investment in our Neighborhoods
Pursue Funding for Equitable, Sustainable, and Resilient Infrastructure and Accelerate San José’s Climate Smart Goals 2 IGR
By The
Numbers
(December 7 – April 7)
Advocated for $5.5 million in
federal earmark funding
238+ Bills Actively Monitored
30+ Advocacy Letters
3 Legislative Advocacy Trips to
Sacramento
And…dozens of meetings with
Legislators and Agency Staff to
advocate for San José priorities
Intergovernmental Relations = IGR
2025
Spring
IGR
Report
Federal Highlights
FY 2025 Budget Negotiations
President’s FY 2026 Budget Proposal
Advocacy Efforts
Immigration Update
State Highlights
Governor's 2025-2026 Proposed
Budget
Advocacy Efforts
City Sponsored Legislation
Federal Budget
President Trump signed the Continuing Resolution on March 15, extending federal spending through the rest of FY 2025
This action eliminated the City’s $5.5 million in pending Federal earmarks for Alum Rock Business Corridor improvement, Cahalan Park, Yerba Buena bridge reconstruction, sideshow deterrence, and Happy Hollow microgrid
Budget reconciliation is under consideration in the House and Senate, including raising the debt ceiling
Extension of tax cuts
Increased funding for Immigration and Customs Enforcement Potential cuts to Medicaid
President Trump's FY 2026 budget is anticipated to be released in mid-May Submitted FY 2026 earmarks to Senators Padilla and Schiff and Representatives Liccardo, Lofgren, Khanna, and Panetta
5 Federal Advocacy
Engagement with the City's delegation and federal agencies on receiving awarded grant funding
BART to Silicon Valley Phase II project towards full funding grant agreement by early 2026
Funding resources for 2026 major events, including $625 million for all 11 U.S.
FIFA World Cup host regions
Protecting the tax-exempt status of municipal bonds
Surface Transportation Reauthorization Act funding priorities Continued advocacy on the Affordable Connectivity Program, increased funding for rental assistance programs, and enforcement of Quiet Zones Continued engagement via letters and meetings with our federal delegation on the potential reauthorization of the Workforce Innovation and Opportunity Act (WIOA)
6 Federal Immigration Update
President Trump issued several Executive Orders on immigration Budget reconciliation priorities being negotiated include increased resources dedicated to immigration enforcement actions and border security MOU was executed between the Department of Housing and Urban Development and the Department of Homeland Security (DHS) to encourage cooperation and data sharing to identify undocumented immigrants
Internal Revenue Service and DHS have agreed to share information to assist immigration authorities in locating individuals targeted for deportation Continued efforts by the Trump Administration to withhold federal funds from jurisdictions that do not cooperate with Immigration and Customs Enforcement The City joined 15 other jurisdictions in litigation, and on April 24, a federal injunction was issued barring the federal government from withholding funds to sanctuary jurisdictions
City Staff continue to hold meetings with federal lobbyists and the City's federal delegation on the City's preparation and response 7
State Budget
Governor’s January 2025-2026 Proposed Budget:
Released proposed 2025-2026 budget on January 10
Included a projected surplus of $363 million
Did not include funding for the Homeless Housing, Assistance, and Prevention Program (HHAP) Round 7
New cost pressures from wildfire response, social services, and federal actions Revised Budget anticipated in early May
IGR will distribute a letter outlining the City's priorities Funding Advocacy:
In partnership with the Civil Prosecutors Coalition, advocated for additional funding for potential legal challenges associated with Presidential Executive Orders Partnered with VTA to advocate for SB 1 funding to support the BART Silicon Valley Phase II project Advocated for budget action for San José-specific funding to support community activations associated with 2026 Special Events
Initiated discussions on funding priorities for the reauthorization of the state Cap-and-Trade program Submitted State Member Requests to the San José delegation 8 State Advocacy
Legislative Advocacy:
Advocated for the inclusion of more flexible options in the Housing Bond legislation Actively engaged in the development of the Downtown Revitalization Legislative Package Actively opposing proposed changes to the Quimby Act (SB 315) which would reduce land dedication and fees that support park development
Engaged in discussions on Regional Transportation Measure in partnership with VTA Regulatory Advocacy:
Partnered with the City’s cardrooms regarding new proposed regulations from the Bureau of Gambling Control
Advocacy Days in Sacramento:
Participated in meetings with Civil Prosecutors Coalition on January 22 Accompanied Director of Housing in meetings with State Delegation on March 17 Accompanied Mayor in meetings with State Delegation on April 7 Accompanied Deputy City Manager Passons in meetings with State Delegation on April 23 9 City Sponsored Legislation
10 AB 476 (González)
Copper Theft
SB 753 (Cortese)
Abandoned Shopping
Carts
• Expanding the information that junk dealers and recyclers must collect before purchasing copper
• Prohibiting the possession of additional types of scrap metal from public infrastructure
• Supporters: League of California Cities, LA Cleantech Incubator, CA Broadband & Video Assoc, various additional cities
• Committee Hearing: April 29 (Public Safety)
• Allows local governments to return carts directly to retailers, pick up carts immediately and return them to retailers without a three-day notice requirement, and recover the actual costs of managing the program • Initial conversations with CSAC, League of California Cities, Retailers Association, Grocers Association
• Committee Hearing: May 7 (Local Government)
Other Substantive Advocacy Efforts
11 Second tier—other areas with expected considerable effort Ongoing and sustainable funding for homelessness, including advocating for HHAP Round 7 Regional planning and coordination to achieve functional zero unsheltered [SB 606 (Becker)] Cost recovery for encampment clean-up on Caltrans properties [SB 569 (Blakespear)] Prop 1, Prop 36, Care Court implementation [SB 28 (Umberg), SB 38 (Umberg)] BART funding/advocacy in partnership with VTA
2026 major events (Super Bowl 60, 2026 FIFA World Cup, NCAA Men's March Madness) Development of funding priorities for the reauthorization of the state Cap-and-Trade program Immigration-specific legislation to protect residents from potential federal action Berryessa Flea Market / Surplus Land Act exemption
CEQA reform [SB 607 (Wiener), AB 507 (Haney), AB 609 (Wicks)] Third tier—will actively monitor for potential opportunities Builder’s Remedy clean-up legislation [SB 457 (Becker)] Proposition 4 (Climate Bond) implementation (in close partnership with Valley Water) Funding to support the City’s Soft Story Retrofit Ordinance Additional legislation on Housing, Economic Development, Transportation, etc.
Presenters:
Sarah Zárate, Director, Office of Administration,
Policy, & Intergovernmental Relations
Zane Barnes, Chief Intergovernmental Relations
Officer
Steve Stamos, Senior Executive Analyst, IGR
Nicholas Ochoa, Senior Executive Analyst, IGR
Lobbyist Support:
Stephanie Estrada & Nick Romo, Cruz Strategies
Leslie Pollner, Holland & Knight
Council
Actions
San José City Council 4.29.25
Item 3.4
2025 Spring Intergovernmental Relations
Report
Accept the 2025 Spring IGR Report
Reaffirm City positions in Federal
Legislative Log
Reaffirm City positions in State Legislative
Log