News Summary
Santa Ana city management has announced the relinquishment of a $6.7 million state grant for child care programming due to budgetary constraints and compliance issues. The decision has raised concerns about transparency within the city government, as the City Council was not informed prior to the grant’s relinquishment. The city faced challenges in meeting the regulatory requirements and managing costs associated with the project, crucial for supporting vulnerable youth in the community. Despite criticism, some officials urge the continuation of efforts to secure future funding for child services.
Santa Ana city management has announced that the city will relinquish a nearly $7 million state grant intended for child care programming. This decision arises from the city’s inability to bear ancillary costs associated with the grant, contributing to broader concerns about budgetary constraints and compliance challenges.
The state grant, totaling $6.7 million, was awarded for child care and development programming aimed at establishing seven facilities that would serve over 500 vulnerable youth in the community. The funding was designed to cover essential aspects such as hiring new staff, obtaining necessary licensing, providing training, purchasing program equipment, engaging the community, and upgrading facilities to meet operational standards.
This decision to relinquish the grant has raised significant questions regarding the communication process within the city government. The City Council was not informed prior to the contract’s relinquishment, leading to concerns about transparency and the need to keep elected officials in the loop on major funding decisions.
City Councilmember Johnathan Ryan Hernandez underscored the importance of discussing significant funding decisions publicly at City Council meetings. The lack of communication on this matter has prompted further scrutiny into the management practices of the city.
Assistant City Manager Kathryn Downs explained that the city could not comply with the state’s complex regulatory requirements, which include adhering to federal regulations and California’s Title 5 and Title 22 standards. The city faced challenges due to the absence of an expert capable of navigating these stringent regulations, which significantly influenced the decision to relinquish the grant.
There were plans to hire a site director with the necessary expertise; however, the urgency of the situation created additional pressures on the city’s staff, complicating matters further. Despite potential reimbursements for reasonable and necessary costs related to the contract, starting the program would have imposed significant upfront costs on the city.
The City Council had previously approved a $915,583 contract with the state in November 2024, marking the first round of funding from the grant program. However, downs noted that constructing necessary restroom facilities for the program could cost the city up to $10 million. This estimate has been contested by Councilmember Jessie Lopez, who argued that smaller restroom facilities would suffice according to regulations.
The state had established a deadline for setting up the facilities by May 12, which Downs deemed unrealistic. Councilmember Lopez, however, pointed out that only one operational facility would be necessary to maintain the validity of the grant.
Mayor Valerie Amezcua expressed gratitude for the decision to return the grant, asserting that Santa Ana would have faced financial challenges if it proceeded with the child care program. The city is already grappling with a projected $35 million budget deficit over the next four years, raising further doubts about its ability to manage and implement the anticipated child care program.
Councilmember Thai Viet Phan echoed these concerns, highlighting that outside funding often comes with complex stipulations that can be burdensome. Additionally, Councilmember Jessie Lopez reiterated the city’s responsibility to prioritize affordable child care and youth programs while emphasizing the need for effective communication between the City Council and city management.
Despite this setback, Councilmember Benjamin Vazquez encouraged city staff not to be discouraged from pursuing future grants, stressing the importance of continuing efforts to secure funding for the community’s needs. A spokesperson for the city has declined to provide further comments on the relinquished grant.
Deeper Dive: News & Info About This Topic
HERE Resources
Costa Mesa Residents Face Alarming Sexual Assault Charges
Costa Mesa City Council Moves Forward with Interim Manager Contract
Costa Mesa Establishes Legal Defense Fund for Immigrants
Costa Mesa to Host Community E-Bike Skills Course
Federal Immigration Raid Causes Panic at Santa Ana Car Wash
Rising Costs for Orange County Taxpayers Amid City Official Departures
Costa Mesa Establishes Immigration Legal Defense Fund
Newport Beach City Council Approves Townhouse Development
Tragic Vehicle Crash in Fountain Valley Claims Young Life
Newport Beach City Council Approves Transit Hub Purchase
Additional Resources
- LAist: Santa Ana Relinquishes $7 Million Grant
- Wikipedia: Child Care in the United States
- LA Times: New Care Center for Unhoused Children
- Google Search: Santa Ana Child Care Programs
- New Santa Ana: Parents Convicted of Child Abuse
- Google Scholar: Santa Ana Children Services
- LA School Report: Early Learning Collaborative
- Encyclopedia Britannica: Child Care

Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.