Federal Child Care Fund Freeze Lifted as Contra Costa Supervisors Move Hundreds of Millions in Contracts

The Contra Costa County Board of Supervisors convened July 14 with a packed agenda — 108 consent items, two proclamations, and a Head Start update that carried breaking news: the federal government had formally rescinded its freeze on three major child care funding streams just the day before, ending months of fiscal uncertainty for thousands of families. The board also heard from a striking steelworkers' union president raising safety alarms at the Martinez refinery and a Black-owned cannabis dispensary owner who said the county's permitting system forced her out of business.

• Federal government lifts freeze on child care funds after California wins in court, restoring roughly half the county's child care budget
• 108 consent items approved unanimously, including a $250 million pharmacy benefit contract and $3.2 million cybersecurity purchase
• Steelworkers union reports day 79 of Marathon refinery strike, citing county safety assessments that flag staffing and fatigue
• Owner of county's first Black-owned cannabis dispensary asks board to create adult-use sales pathway after forced closure
• Board celebrates Disability Pride Month with personal testimony from self-advocate and nonprofit leader
• Supervisors adjourn in memory of former Alameda County Supervisor Scott Haggerty after 24-year career

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Child Care Crisis Averted — For Now

Why it matters: The U.S. Department of Health and Human Services formally rescinded its freeze on three federal funding streams — the Child Care Development Fund, Temporary Assistance for Needy Families, and Social Services Block Grants — on July 13, one day before the board meeting. Those funds represent approximately 50% of Contra Costa County's child care budget, and their freeze had threatened the stability of programs serving thousands of children.

Where things stand: Employment and Human Services Director Dr. Marla Stuart told the board that HHS had frozen funds in California and four other states in January and February 2026, demanding immigration status data as a condition of continued funding. California sued and won.

"California and the other states prevailed in stopping the federal government from requiring us to provide information to them that we had not previously been required to provide," said Dr. Stuart.

Community Services Bureau Director Sarah Reich reported that Head Start enrollment hit 99% in federal slots and 100% in state slots for May, serving 4,071 children and 2,244 meals daily. The Head Start grant for fiscal year 2026-27 includes a $128,976 cost-of-living increase.

But a separate funding shift is also underway: both the California Department of Education and California Department of Social Services are ending pandemic-era hold-harmless reimbursement policies, transitioning to enrollment-based models effective July 1. Staff said they anticipated the change and no additional board action is needed.

All five monitoring tools showed over 91% compliance, though six indicators showed non-compliance above 10%, including safety monitoring in seven classrooms.

Supervisor Candace Andersen praised staff for maintaining comprehensive reporting through the turbulence: "It's just some really good progress that we have been making despite having some really challenging times and uncertainty."

Decisions: The board accepted the monthly update unanimously (For: 5, Against: 0, Absent: 0), moved by Supervisor Andersen, seconded by Supervisor Shanelle Scales-Preston.

What's next: The shift from hold-harmless to enrollment-based state reimbursement bears watching. If enrollment dips, so does funding — a dynamic that could pressure programs that just survived a federal freeze.

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Day 79: Steelworkers Sound Safety Alarm at Martinez Refinery

Why it matters: The Marathon refinery strike in Martinez — now in its 79th day — is not just a labor dispute. It's a community safety issue, and the union is using county data to make the case.

Where things stand: Nick Perkowski, president of United Steelworkers Local 5, used public comment to lay out what he described as a pattern of safety failures tied to staffing cuts and worker fatigue. He cited a November 2022 catalyst dumping incident in Martinez where fatigue was a key factor, and a November 2023 incident where worker Jerome Serrano was burned over 80% of his body.

"The county recently published a draft report about the Martinez Refining Company talking about process safety culture assessments done in 2023 and 2025 that mentioned fatigue and staffing as the lowest five answers on the report," Perkowski told the board.

He said the refinery has lost 89 employees since PBF Energy took over operations in 2020, including operators and corrosion engineers who have not been replaced.

What's next: The board took no action — public comment does not allow for discussion or votes — but the county's own process safety assessments give the union's claims documentary backing that could shape future regulatory action.

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Cannabis Equity Gap: Black-Owned Dispensary Owner Says System Forced Her Out

Dr. Ayoka Matlock, a lifelong Richmond resident and owner of Urban Soil — described as the first Black-owned, family-operated cannabis dispensary in Contra Costa County — told the board her business opened in late 2023 in El Sobrante and closed in June 2025 because she was limited to medicinal-only cannabis sales while all other dispensaries could serve the much larger adult-use market.

She reported facing two targeted burglaries, intimidation, business interference, and vandalism.

"I am not asking for special treatment. I am asking for a fair chance to reopen, attract investment, create jobs and compete with other cannabis businesses," Dr. Matlock said.

She asked the board to agendize her request for a fair adult-use pathway and to direct county staff to meet with her to identify a lawful path forward. Chair Diane Burgis noted the item could not be discussed since it was not on the agenda but said the district supervisor would handle it through appropriate channels.

What's next: Whether the board places the item on a future agenda will signal how seriously it takes cannabis equity in unincorporated areas — and whether the county's permitting structure inadvertently disadvantages the operators it was designed to include.

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Disability Pride Month: Self-Advocate and Nonprofit Leader Push Board Beyond Symbolism

Chair Burgis opened the Disability Pride Month proclamation by welcoming Robert Norris, a self-advocate born with epilepsy and cerebral palsy, and Debbie Toth from Choice in Aging.

Norris shared his story of living independently, holding a job, and raising three children. "I just wanted to show other people who have disabilities like me that independence is achievable if you work hard enough," he said.

Toth urged the board and community to think of accessibility as benefiting everyone: "When we make the world accessible for wheelchairs and walkers and canes, we make the world accessible for bikes and strollers and all the things. So please celebrate disability Pride by making the world more accessible."

Supervisors turned the proclamation into a personal conversation. Supervisor John Gioia shared his father's story — a high school teacher who became legally blind while still teaching at Kennedy High School — and advocated for the term "differently abled." Supervisor Andersen described pushing back against bark-only playground surfaces that are inaccessible to her 96-year-old father's wheelchair: "Can you imagine a child who is trying to navigate through a wheelchair or through a walker? That's not going to work for them. We need smooth surfaces."

Supervisor Scales-Preston framed accessibility as a collective obligation: "Their ability to navigate the world is incumbent upon us to make it accessible so that disability doesn't have to be a disabling thing."

Resolution No. 2026-280 was adopted on the consent calendar.

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Supervisors Remember Alameda's Scott Haggerty

The board adjourned in memory of former Alameda County Supervisor Scott Haggerty, who represented the Tri-Valley for 24 years and was a prominent voice in Bay Area regional governance through ABAG and the Air District.

Supervisor Gioia recalled Haggerty's outsized influence: "He was always the consummate, strong advocate for the area he represented, but also for the region."

Supervisor Andersen, who worked with Haggerty on the Tri-Valley Transportation Council, shared a lighter memory: "He came roaring in and said, you made that meeting go so fast. You made me miss my stipend. So he was really mad that he was missing his hundred dollars." She noted his recent lung transplant and move to Tennessee.

Chair Burgis said their districts bordered each other and praised his generosity. The board will send a condolence letter to his family.

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Minor Items

• $250 million contract with MedImpact Healthcare Systems for prescription drug benefit management approved on consent (C.30).
• $3.2 million purchase for Palo Alto Prisma Access cloud security approved on consent (C.76).
• $442,650 contract with Fehr & Peers for a Bay Point bicycle and pedestrian facility feasibility study (C.13). Supervisor Scales-Preston highlighted it as serving an underserved community.
• $915,000 approved for brownfields site assessment (C.15).
• $554,000 contract extension with Focus Strategies for homelessness system planning (C.14).
• $500,000 for EV charger hardware from Autel (C.88).
• $325,000 AI contract amendment with Madison Artificial Intelligence (C.72).
• 17 census tracts nominated for federal Opportunity Zones 2.0 (C.12).
• Vasco Road Safety Improvements Phase 2 CEQA addendum approved (C.97); Deer Valley Road traffic safety construction contract approved (C.98).
• Police services special tax levies for FY 2026-27 approved for CSA P-6 and related service areas (C.107, C.108).
• Federal D. Glover Community Wellness Network RFP authorization approved (C.79).
• Probation Week proclaimed (July 19-25) in honor of the late Marin County Chief Probation Officer Marlon Washington, a Richmond native who began his career at Contra Costa Probation in 1997 and became the first African American to hold the chief probation officer role in Marin County. Resolution No. 2026-281 adopted on consent.
• Three abatement liens totaling $33,701.82 approved on properties at 680 El Centro Rd. and 4025 Lambert Rd. in El Sobrante and 260 Water St. in Bay Point. All three passed 5-0 with no public comment.