Thousands of In-Home Supportive Services (IHSS) workers in Santa Clara County will receive a $2 hourly wage increase over the next year following a new two-year contract approved by the Board of Supervisors. Under the agreement, negotiated with SEIU Local 2015, more than 36,000 workers will see their wages rise to $22.44 an hour by July 2027. District 4 Supervisor Susan Ellenberg noted that the agreement balances county budgetary constraints while supporting essential care providers, though union member Natascha Walker emphasized that the increase still falls short against rapidly rising living costs.
Funding for the program is distributed across federal, state, and local levels. While caregivers previously received modest annual adjustments from the state based on the Consumer Price Index, the county’s local contribution had remained unchanged since 2023. Financial pressures persist as the county manages a $1 billion annual deficit stemming from federal funding cuts under H.R.1, which has forced local service reductions. Furthermore, a recent SEIU 2015 poll highlighted widespread economic strain among caregivers: nearly 62% struggle with housing costs, about 53% rely on food stamps or food pantries, and 78% maintain multiple jobs to make ends meet.
The newly approved contract also introduces changes to healthcare provisions by capping enrollment in the county’s Valley Health Plan at 15,800 workers and raising monthly out-of-pocket premiums from $25 to either $41 or $57 depending on the specific plan. With approximately 15,540 workers currently enrolled through Public Authority Services, disability rights advocate Michele Mashburn expressed concern over the cap, particularly as workers lose Medi-Cal coverage and marketplace insurance costs surge following the expiration of enhanced government subsidies. Although Governor Gavin Newsom’s earlier proposals included cuts that threatened the program, the final state budget passed in June rejected shifts that would have increased financial burdens on counties. Both advocates and workers stress that achieving long-term sustainability will require deeper systemic reforms, including enhanced training and higher compensation to attract quality care providers.
