Santa Clara County Proposes Sales Tax Hike to Offset $1 Billion Federal Funding Shortfall

In a decisive move to combat the significant loss of federal funding, the Santa Clara County Board of Supervisors has voted to put a general sales tax measure on the November ballot. According to the County of Santa Clara, this move follows the slicing of over $1 billion in revenue due to federal budget cuts. This five-eighths of a cent tax increase for five years aims to pull together approximately $330 million annually.

The push for additional funds arrives on the heels of H.R. 1, the severe budget legislation signed into law by President Trump that has to swiftly find ways to fill the void left by over $1 trillion in cuts, particularly to Medicaid and food assistance. As per the County’s data, Medicaid is a pivotal source of healthcare for one in five Americans and almost half of the nation’s children. Santa Clara County is significantly reliant on this, receiving more than $2.3 billion in federal Medicaid funds annually.

Santa Clara Valley Healthcare, encompassing four public hospitals and fifteen clinics, stands on the frontlines, facing the brunt of these cuts. It’s a vital institution that has managed more trauma patients than any in California in 2024, and operates two of the region’s three trauma centers. Board President Otto Lee emphasized the critical nature of the situation when he told the County of Santa Clara, “We are literally cutting into the meat right now and cutting into the bone.” Vice President Sylvia Arenas added that this financial hit could be more devastating than the combined COVID-19 pandemic and Great Recession…

Story continues

TRENDING NOW

LATEST LOCAL NEWS