Encompass Community Services in Santa Cruz announced Wednesday that its Head Start and Early Head Start programs are facing an immediate funding crisis due to sudden federal policy changes.
Unless funds are restored, the organization said, Encompass will be forced to close 15 classrooms and lay off 95 staff, leaving hundreds of local children and families without critical support.
Encompass’ executive team and board of trustees are seeking help from federal representatives and community stakeholders to advocate for the release of funds from the federal Office of Head Start to keep the programs in operation.
Encompass is considering any alternatives to closure, as the impact will be felt by more than 250 children and families across Santa Cruz County, the organization said.
Since being awarded the grant in 1983, Encompass Head Start has provided high-quality, bilingual early learning environments for infants and children up to age 5.
In a press release, Head Start says that closing the programs would be a “tragic loss for our Santa Cruz County families who rely on the program not just for early childhood education and developmental screenings, but for nutritious meals, and family support services as well.”
The loss would compound existing disparities in education, health care, and financial stability, the organization said.
The funding crisis began when the federal administration abruptly reversed its long-standing practice of allowing the use of carryover funds from prior years.
Encompass was repeatedly encouraged to apply for these funds—approximately $400,000—but was told last week that they would not be released.
Requests for meetings to resolve the issue are going unanswered due to the federal government shutdown.
Adding to the challenge, Encompass recently learned that its current Head Start grant will be reduced from $10 million to $6 million next fiscal year, despite a scope adjustment plan already submitted to address enrollment shifts caused by COVID and California’s expansion of Transitional Kindergarten.
That plan adjustment request has also gone unanswered.
“This is not about performance,” said Encompass CEO Shellee Stopera. “Encompass has a spotless record of accountability and quality. This is about a political effort, and the current federal administration, to weaken Head Start by changing the rules midstream and withholding funds. Children, families, and staff in Santa Cruz County are being caught in the middle.”
Encompass is calling on the community to contact their federal representatives immediately to demand reinstatement of the carryover funds and reversal of the grant cut.
“I am not alone in saying this is heartbreaking news for our community. Head Start is more than a program—it is a lifeline for families navigating poverty, housing instability, and limited access to affordable childcare,” Stopera said. “We need urgent action from our community members to protect these vital services.”
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Senator Alex Padilla
Washington, D.C. Office: 202.224.3553 –
California Office 415.981.9369
padilla.senate.gov
Senator Adam Schiff
Washington, D.C. Office: 202.224.3841
California Office : 415.393.0707
schiff.senate.gov
Congressman Jimmy Panetta
Washington, D.C. Office: 202.225-2861
Santa Cruz District Office: .831.429-1976
panetta.house.gov
Congresswoman Zoe Lofgren
Washington, D.C. Office: 202.225-3072
Salinas District Office: 831.837-6000
lofgren.house.gov
