With almost $10 million in federal funding at stake, Los Gatos is bracing for impact

Many Los Gatos residents spoke favorably of policies that protect education, the environment and diversity, equity and inclusion at a town council meeting on Tuesday.

On Jan. 27, President Donald Trump ordered a temporary pause on the distribution of federal grants and loans, specifically for programs related to diversity, equity and inclusion (DEI) and environmental projects like the Green New Deal. That order was withdrawn, but the president still insisted on the funding freeze.

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Although the full impact of the freeze is still unknown, the town determined that Los Gatos was set to receive almost $10 million in federal funding. However, about $7.7 million has not yet been received, and the funds are not directly related to DEI initiatives, climate programs or education.

“Fundamentally, I believe that the town of Los Gatos has a responsibility and an obligation to stand up for our residents and tackle these blatant attacks on our community head on,” said Vice Mayor Rob Moore. “I believe that this discussion is an important first step toward addressing these issues.”

In a 4-1 vote, with Councilmember Mary Badame dissenting, town council directed the staff to return every other month with an agenda item addressing local financial impact of action from the federal government. Mayor Matthew Hudes added that the agenda item should provide opportunity for council members and residents to discuss the possible actions Los Gatos can take locally to provide services to residents in response to federal funding cuts or curtailment of services.

The main concern for the town council involved federal grants Los Gatos was due to receive for wildfire resistance and emergency management, as well as library and museum funding. Los Gatos was expected to receive over $3.7 million for the former. The town intends to match around $1.7 million of that grant, of which the full amount has yet to be received.

Many areas of southern and eastern Los Gatos are prone to wildfires. In discussion with the town council, town manager Chris Constantin said that although Los Gatos can match up to 50% of some of these federal grants, the town may have to dip into reserves from the general fund.

He added that recruitment for an emergency manager will be halted to help close the funding gap. Council in January voted to set aside $1 million for emergency and wildfire preparedness initiatives, as well as the hiring of a fulltime emergency manager. Instead of filling this recently created position, Constantin said, the town will have someone “with experience” come in and evaluate the hillsides and provide options on how to make them fire-safe.

Moore responded, “In the wake of the L.A. fires, I feel that the potential loss of vegetation management and wildfire fuel abatement funding is especially concerning.”

Several community members insisted that something be done in case federal funding for the town’s libraries and museums is cut. Almost $57,000 was allocated for this purpose. Constantin said that this money impacts the availability of e-books to residents or subsidizing internet speeds between the town library and the central library system in California.

Kimberly Snyder, executive director of New Museum Los Gatos, aka NUMU, said that the Institute of Museum and Library Services (IMLS), a governmental agency that funds museums and and libraries in the country, was threatened with reduction and elimination by an executive order. She said NUMU has two concurrent grants from this agency totaling $150,000, which are critical to the museum’s operating budget through 2026.

“NUMU greatly contributes to the town’s vibrancy and economic vitality, welcoming nearly 7,000 annual visitors, hosting a plethora of programs and stewarding our local history,” Snyder said. “I am asking our community tonight to speak up for libraries and museums and ask what we can do to support IMLS.”

Concern about frozen federal funding extended to other governmental assistance programs and executive orders. Several community members expressed concern over the increase in ICE activity in Santa Clara County and reductions to federal benefit programs like Medicare and Medicaid, as well as DEI programs.

“Our town is committed to DEI, but that means nothing if we don’t protect it,” one woman said during public comment.

However, some people spoke favorably of Trump and Elon Musk’s intentions to cut federal spending. Another woman said she “loves Trump” and “praise[s] Elon Musk” and blamed the LGBTQ+ community for the death of her daughter.

“You all have destroyed so many lives in this town,” she said during public comment.

Although town staff didn’t have any estimates on how many Los Gatos residents rely on Medicare, Medicaid, Social Security and the Supplemental Nutrition Assistance Program, Moore said that the Trump administration’s proposed cuts to those programs may force these recipients to turn to town-funded efforts to meet their needs. Constantin reminded the council that it would be a balancing act to increase support for these residents with a looming budget deficit.

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