Encompass announced today 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, 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 actively seeking help from federal representatives and community stakeholders to advocate for the release of funds from the federal Office of Head Start to keep these programs in operation. Encompass is considering any alternatives to closure as the impact will be felt by over 250 children and families across Santa Cruz County. 

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 (Pre-K). Closing the Head Start 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 of these services is devastating for these families, exacerbating existing disparities in education, health care, and financial stability. The program has consistently earned top marks in federal reviews, including its most recent review with zero financial findings.  

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 Shellee Stopera, CEO of Encompass Community Services. “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. 

U.S. Senator Alex Padilla  

- Washington, D.C. Office: (202) 224-3553    

- California Office (San Francisco): (415) 981-9369    

- Contact: https://www.padilla.senate.gov  

U.S. Senator Adam Schiff 

- Washington, D.C. Office: (202) 224-3841    

- California Office (San Francisco): (415) 393-0707  

- Contact: https://www.schiff.senate.gov  

Congressman Jimmy Panetta (CA-19)    

- Washington, D.C. Office: (202) 225-2861    

- Santa Cruz District Office: (831) 429-1976   

- Contact: https://panetta.house.gov   

Congresswoman Zoe Lofgren (CA-18)    

- Washington, D.C. Office: (202) 225-3072  

- Salinas District Office: (831) 837-6000   

- Contact: https://lofgren.house.gov 

Governor Gavin Newsom  

- Sacramento Office: (916) 445-2841 

-Contact: https://www.gov.ca.gov/ 

“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,” said Stopera. “We need urgent action from our community members to protect these vital services.” 

For press inquiries or more information, contact the Encompass Development & Communications Team at [email protected].