The federal government has eliminated millions in potential funding meant for community projects in San Jose involving the Alum Rock business corridor, Happy Hollow Zoo and more.
Sarah Zárate, director of intergovernmental relations for the city, told councilmembers Tuesday that even though Congressmembers Ro Khanna, Jimmy Panetta and Zoe Lofgren requested $5.5 million in federal funds — the government’s continuing resolution, signed March 15, to extend spending through the rest of the year failed to include community project money.
There are five projects being deprived of funding: the Alum Rock business corridor improvement projects were counting on $2 million; Cahalan Park upgrades were getting $2 million; Yerba Buena Bridge reconstruction had $1 million in potential funding; Happy Hollow‘s power grid was waiting on $250,000 and Evergreen and East San Jose were on tap for $250,000 for sideshow and street racing deterrence.
“Without these federal funds, efforts to address these projects and issues like sideshows and street racing may be delayed as we explore alternative funding opportunities,” city spokesperson Demetria Machado told San José Spotlight.
Congressmembers will have the opportunity to request the funding for the following fiscal year, but requests can change based on updated city priorities. Representatives may seek federal funding for up to 15 community projects, which are expected to be announced in the coming weeks.
“We’ve already issued over 30 legislative and funding advocacy letters advancing the city’s (2025) priorities, and will continue to do so through the sessions,” Zárate said at the meeting.
Mary Valderrama, chair of the Alum Rock Village Action Committee, said much of the country has been negatively impacted by federal funding cuts, and San Jose needs to stay resilient.
“What’s so disappointing is that East San Jose never gets the love or respect that other parts of the city do,” she told San José Spotlight. “It’s so difficult to get city leaders, not our councilmember, but to get the city departments to pay attention to us — so getting funding would be fantastic.”
City officials said the $2 million in funding would’ve improved restaurants, streetscapes and revitalized a large commercial building in the historic Mayfair neighborhood. The funds would’ve increased capacity for local small businesses so new jobs and companies can sprout. According to a May 7, 2024 letter from Lofgren, funding would’ve also helped retain four small businesses, 50 jobs and establish a “sorely needed” community cafe and food pantry in the area to offer affordable and healthy food options for Mayfair residents.
“Lofgren and Khanna have fought for this community for years, but with only one vote on the City Council (for East San Jose), sometimes there’s nothing to show,” longtime community advocate Danny Garza told San José Spotlight. “A lot of the businesses here don’t own their building. We live paycheck-to-paycheck.”
As the Alum Rock Santa Clara Street Business Association celebrated a $100,000 grant from the city toward supporting the same business corridor late last year, leaders say the loss of more potential funding is deeply unfortunate.
“Still, the Alum Rock Santa Clara Street Business Association remains committed to working with our partners to support the growth and resilience of the communities we serve,” Helen Masamori, co-chair of the association, told San José Spotlight.
Of the $2 million in potential funding for Cahalan Park in South San Jose, the now-eliminated money would have gone toward building four to eight new pickleball courts. The $1 million in potential funding for the Yerba Buena Bridge reconstruction would have repaired a crossing over Yerba Buena Creek and connect neighborhoods to high-use areas.
Contact Vicente Vera at [email protected] or follow @VicenteJVera on X.
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