COUNCIL AGENDA: 4/28/26
FILE: 26-469
ITEM: 3.4
TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Emily Lam
SUBJECT: Spring 2026
Intergovernmental
Relations Report
DATE: April 22, 2026
Approved
Date:
4/24/2026
COUNCIL DISTRICT: Citywide
REASON FOR REPLACEMENT
This replacement memorandum eliminates recommendation (d) to adopt a “support in concept” position for Assembly Bill (AB) 2252 (Lee and Wicks). This memorandum also serves as an update on AB 2252, as it was held at the April 22, 2026 Housing and Community Development Committee and likely will not move forward in the current legislative session. The October 24, 2025 City Council memorandum provides sufficient direction for the City’s future advocacy actions.
RECOMMENDATION
(a) Accept the 2026 Spring Intergovernmental Relations Report. (b) Reaffirm all City positions summarized in the 2025-2026 Intergovernmental Relations Priority Federal Legislation Log.
(c) Reaffirm all City positions summarized in the 2025-2026 Intergovernmental Relations Priority State Legislation Log.
SUMMARY AND OUTCOME
The Spring Intergovernmental Relations Report provides an update on the City’s top legislative priorities and outlines legislative positions for the City Council to reaffirm. All legislative positions are outlined in Attachment A: 2025-2026 Intergovernmental Relations Priority Federal Legislation Log and Attachment B: 2025-2026 Intergovernmental Relations Priority State Legislation Log. Acceptance of this report continues the Administration’s advocacy efforts to advance City priorities.
Since the last briefing to the City Council on January 13, 2026, the Intergovernmental Relations (IGR) team, which is part of the City Manager’s Office of Administration,
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
Policy, and Intergovernmental Relations, took the following major actions to further the City’s legislative priorities in coordination with departments, offices, and external stakeholders.
BACKGROUND
The Administration provides regular updates on legislative and regulatory advocacy efforts to inform the City Council of actions taken throughout the year related to federal and state legislative advocacy. IGR last reported on January 13, 2026 to the City Council (Item 3.5 26-023
1), which approved the 2026 Legislative Program and
Legislative Priorities (Item 3.6 26-0272). The analysis section of this memorandum is organized into subject areas: Budget and Legislative Priorities.
ANALYSIS
Budget
Federal Update
At the time of this memorandum, the federal government remains in a partial shutdown due to the lapse in the Fiscal Year 2026 appropriation for the U.S. Department of Homeland Security (DHS). However, the President signed Executive Orders on March 27 to pay Transportation Security Agency employees and on April 3 to pay all other DHS employees.
The President released the Fiscal Year 2027 budget request on April 3, 2026. IGR will engage the City’s federal delegation to oppose the proposed reductions to the U.S.
Department of Housing and Urban Development (HUD) that could constrain efforts to expand affordable housing and address unsheltered homelessness in San José.
The City submitted 25 applications for earmarks to the City’s federal delegation. These applications seek funding for 12 projects that will benefit San José residents. Projects were chosen based on several factors, such as alignment with the City Council- approved Legislative Priorities and Program, guidance issued by the House and Senate Appropriations Committees, and feedback from the City’s federal delegation and lobbying teams. At the time of this memorandum, Members of Congress are reviewing all submissions for the Fiscal Year 2027 appropriations process. For reference, please see a full list of projects that IGR is seeking in Attachment C: FY2027 Community Project Funding and Congressionally Directed Spending Requests.
The City signed onto a coalition letter with other local governments on March 27, 2026, to oppose the General Services Administration’s proposed rule requiring new certifications among federal funding recipients. These include Executive Order 14173:
1 https://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=15413 2 https://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=15415
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
Ending Illegal Discrimination and Restoring Merit-Based Opportunity,3 U.S. Department of Justice Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination,4 and an immigration provision that does not align with the City’s policies and practices. The proposed change would affect the City's ability to receive an award or payment as a direct contractor or grantee of a federal government agency or department.
State Update
IGR issued an information memorandum on the Governor’s Fiscal Year 2026-2027 budget proposal and potential impacts to the City and its residents.5 IGR continues to monitor, assess implications for City services, and advocate accordingly.
The City, in collaboration with the Big City Mayors Coalition, continues to advocate for a full restoration of the Homeless Housing, Assistance, and Prevention (HHAP) Program funding. The Governor committed a reduced amount for Fiscal Year 2026-2027, with an expected $12.5 million for the City (full HHAP allocation yields approximately $25 million for the City). IGR continues to engage with the City’s state delegation and the Governor’s office to communicate the potential impacts that this funding reduction would have on the City’s ability to serve people experiencing homelessness.
The City, in collaboration with the Valley Transportation Authority, engaged the City’s state delegation to testify on AB 117, a budget trailer bill providing emergency loan funding to regional Bay Area transit agencies. As a result of joint advocacy, this bill includes a provision to preserve previously authorized funding commitments for the Bay Area Rapid Transit Silicon Valley Phase II Project.
Unlike Congress, the California Legislature has not yet initiated a formal process to solicit earmark requests. IGR continues to engage the City’s state delegation and lobbying team to identify opportunities for submitting these requests for the state’s Fiscal Year 2026-2027 appropriations process.
Legislative Priorities
Reduce Unsheltered Homelessness, Support Unhoused Residents, and Increase Opportunities for Affordable Housing
Federal Update
The City is supporting the 21
st Century Renewing Opportunity in the American Dream to Housing Act, which the Senate passed and sent to the House for final consideration on March 16, 2026. This bill, if passed, would enable the City to apply for additional affordable housing grants and expedite certain housing-related activities with environmental review exemptions.
3 https://www.federalregister.gov/documents/2025/01/31/2025-02097/ending-illegal-discrimination-and- restoring-merit-based-opportunity
4 https://www.justice.gov/ag/media/1409486/dl
5 https://www.sanjoseca.gov/home/showpublisheddocument/128828/639082116682970000
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
HUD proposed a rule on February 20, 2026, that would require everyone in a household, regardless of age, to have their citizenship or immigration status verified before receiving assistance.6 HUD proposed another rule7 on March 2, 2026, imposing time limits on how long families can receive housing assistance and requiring able- bodied adults to work. If these rules come into effect, many San José households would become ineligible for assistance, lose their subsidies, and likely be displaced. IGR is currently working with relevant City departments and other jurisdictions on comments opposing both proposed changes.
As of April 6, 2026, HUD has renewed the funding for permanent supportive housing to comply with the requirement in the Fiscal Year 2026 Transportation, Housing, and Urban Development Appropriations Act. These resources support approximately 1,600 individuals residing in 1,288 permanent supportive housing units in San José.
State Update
The City, in collaboration with the Mayor’s Office, is supporting AB 1406 (Ward), which would allow developers to keep six percent – instead of the current three percent – of the purchase price in case an individual backs out of buying a new condominium. This bill would encourage lenders to finance more construction and ultimately increase the supply for entry-level home ownership.
IGR is closely monitoring AB 1903 (Wicks), which would enable developers to fix construction defects first before buyers can sue them. This bill would expedite repairs for homeowners, decrease costly and time-consuming litigation, and encourage developers to build more condominiums.
The City is supporting AB 1556 (Haney), which would allow recovery residences to receive state funding if they fulfill the Housing First requirements. This bill could enhance the City’s ability to serve people experiencing homelessness with appropriate treatment services. The 2023 Point-in-Time Count revealed alcohol or drug use as the second leading cause of homelessness behind job loss.
The City is supporting AB 2252 (Lee and Wicks) in concept based on the October 24, 2025, City Council memorandum.
8 This bill would allow the construction of apartment
buildings of up to six stories to have a single exit and stairway. The City has engaged with the author’s office to seek amendments reflecting the safety concerns identified in the Single-Exit, Single Stairway Report to the Legislature.9 AB 2252 was heard at the
6 https://www.federalregister.gov/documents/2026/02/20/2026-03405/housing-and-community- development-act-of-1980-verification-of-eligible-
status?utm_campaign=subscription+mailing+list&utm_medium=email&utm_source=federalregister.gov 7 https://www.federalregister.gov/documents/2026/03/02/2026-04095/establishing-flexibility-for- implementation-of-work-requirements-and-term-limits
8 https://sanjose.legistar.com/View.ashx?M=F&ID=14888987&GUID=EF3007D1- D80E-4EF7-B79D- BFB164676CF5
9 https://34c031f8-c9fd-4018-8c5a-4159cdff6b0d-cdn-endpoint.azureedge.net/-/media/calfire- website/about/resources/legislatively-mandated-reports/single-stair-single-exit-final- report.pdf?rev=2c31e9c6f3204add8419d7aeca70f0d8&hash=D1A7335F988597CB0C0CCF6279772 AB1
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
April 22, 2026 Housing and Community Development Committee hearing, but was held in Committee and likely will not move forward in the current legislative session.
Enhance Community Safety and Realize Vision Zero Initiatives
Federal Update
The City is applying for Federal Emergency Management Agency funding for the 2026 FIFA World Cup. These resources, which the Bay Area Host Committee is administering, would support security operations for team hotels, base camps, and venue-specific training sites as well as fan events in San José.
State Update
The City is sponsoring AB 1941 (González), which would strengthen enforcement against those involved in organized metal theft. Since September 1, 2024, stolen wire incidents have affected a total of 2,305 streetlights, including 208 repeatedly targeted for copper theft.
IGR shared its feedback on AB 1633 (Haney) with the Assemblymember’s team and Assembly Revenue and Taxation Committee Principal Consultant, in response to the February 10, 2026, City Council memorandum authored by Councilmembers Ortiz, Campos, Candelas, and Cohen. This bill would impose a 50 percent tax on the gross receipts of each private, for-profit immigration detention facility operator. IGR is seeking amendments to the bill before submitting a support letter.
IGR has continued to advocate for adding the City of San José to AB 647 (González), which would authorize the disposal of abandoned vehicles valued up to $4,000.
Approximately 550 such vehicles appear in San José, blocking streets and compromising public safety. This bill is currently limited to the counties of Alameda and Los Angeles.
Advocate for Educational and Employment Opportunities that Foster Equitable Outcomes for San José Families
Federal Update
The City is supporting S. 193 and H.R. 630, the Neighbors Not Enemies Act in response to the January 13, 2026, City Council-adopted motion. This bill would protect San José’s residents and visitors from apprehension and removal in case the federal government targets citizens of countries engaged in war or threatening an invasion against the United States.
IGR shared its feedback on H.R. 581, the Child Care Workforce and Facilities Act of 2025, with Congressman Harder’s team. IGR specified that cities, not just states and tribal entities, should directly receive federal grants to build or renovate childcare facilities and expand the childcare workforce.
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
State Update
IGR is closely monitoring AB 1914 (Schiavo), which would require cities and counties to incorporate childcare needs in their general plan updates. This bill builds on the City’s accomplishments in expanding access to affordable, convenient, quality, and safe childcare.
The City, through the Civil Prosecutors Coalition, is supporting Senate Bill (SB) 1099 (Reyes), which would clarify local governments’ authority to provide public benefits. This bill would allow San José’s residents without lawful immigration status to receive food, health, housing, and other assistance from local governments, given their general ineligibility under current federal law.
Drive Downtown Revitalization and Cultivate Equitable Investment in Our Neighborhoods
Federal Update
The President released the National Artificial Intelligence (AI) Framework on March 20, 2026.
10 IGR continues to engage the City’s federal delegation on protecting children and ratepayers, streamlining data center permitting, deploying AI systems, and expanding an AI-ready workforce.
State Update
The City is sponsoring SB 1375 (Cortese), which would exempt the Diridon Station modernization from additional California Environmental Quality Act reviews. This bill would expedite the construction of the station into a multimodal transportation hub integrating local and regional bus and rail connections and delivering critical economic, environmental, and mobility benefits for all Californians.
IGR is closely monitoring SB 887 (Padilla), which would specify environmental standards for data centers. However, it would create a mandatory local program for greenhouse gas emission quantification and mitigation without state reimbursement.
Pursue Funding for Equitable, Sustainable, and Resilient Infrastructure and Accelerate San José’s Climate Smart Goals
Federal Update
The City’s Department of Transportation, in collaboration with IGR, applied for $9.8 million from the federal Better Utilizing Investments to Leverage Development grant program. This funding would advance Phase 2 of the Diridon Station to the San José Mineta International Airport Connector project, providing ridership and revenue forecasting. The City Council approved moving forward with the next phase of this project at the March 25, 2025, meeting.
11 10 https://www.whitehouse.gov/releases/2026/03/president-donald-j-trump-unveils-national-ai-legislative- framework/
11 https://sanjose.legistar.com/LegislationDetail.aspx?ID=7256394&GUID=952A51A6- B8AC-4E37-B8DA- 00B9FEFC0A88
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
State Update
The City is supporting SB 1159 (Cabaldon), which would limit civic engagement in the City’s public meetings and hearings to human participants. The City has expressed grave concern regarding the reported inappropriate use of AI-powered tools, misusing residents’ identities and misrepresenting their views, to influence decisions of the Bay Area Air District and South Coast Air Quality Management District.
The City, in collaboration with the California Community Choice Association, is supporting AB 1761 (Rogers), which would require the California Public Utilities Commission and utilities to publicly disclose the data, assumptions, and methods for calculating the Power Charge Indifference Adjustment. This bill aligns with the City’s priority to improve affordability, as San José ratepayers who switch to San José Clean Energy must pay this fee, which remains opaque and difficult to verify.
EVALUATION AND FOLLOW-UP
The City will continue to advance the City Council-approved 2026 Legislative Priorities and Legislative Program. The City will continue to report on all legislative positions on a regular basis.
COORDINATION
The substance of this memorandum was coordinated with the City Attorney’s Office, City Manager’s Budget Office, City Manager’s Office of Economic Development and Cultural Affairs, City Manager’s Office of Emergency Management, City Manager’s Office of Racial and Social Equity, Energy Department, Environmental Services Department, Finance Department, Fire Department, Housing Department, Information Technology Department, Library Department, Parks, Recreation and Neighborhood Services Department, Planning, Building and Code Enforcement Department, Police Department, Public Works Department, and Transportation Department.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the April 28, 2026 City Council meeting.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
No board, commission, or committee recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
April 22, 2026
Subject: Spring 2026 Intergovernmental Relations Report
CEQA
Not a Project, File No. PP17-010, City Organizational and Administrative Activities resulting in no changes to the physical environment.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
Emily Lam
Director, City Manager’s Office of
Administration, Policy, and
Intergovernmental Relations
For questions, please contact Han Kang, Deputy Director and Chief Intergovernmental Relations Officer, City Manager’s Office of Administration, Policy and Intergovernmental Relations at [email protected].
ATTACHMENTS
Attachment A: 2025-2026 Intergovernmental Relations Priority Federal Legislation Log Attachment B: 2025-2026 Intergovernmental Relations Priority State Legislation Log Attachment C: FY2027 Community Project Funding and Congressionally Directed Spending Requests.