Sunnyvale ready to dip into budget surplus if federal funding cuts threaten local services

WHILE SILICON VALLEY GRAPPLES with millions of dollars in federal cuts, one city is trying to use its own money to weather the storm.

The Sunnyvale City Council allocated its fiscal year 2025-26 federal grants on May 6. The city has about $383,000 from the HOME program, $1 million in Community Development Block Grant funding and $600,000 unspent from the 2024-25 fiscal year. That money is going toward various programs and organizations that support residents, such as affordable home repairs or child care improvements. But the city is preparing to use its general fund dollars or other resources to uphold local support service programs in case federal funding cuts eliminate the grant funding.