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Alameda County considers legal challenge to new rules for millions in nonprofit awards

Alameda County supervisors are considering a legal challenge to Senate Bill 1193, a new state law signed by Gov. Gavin Newsom on Aug. 27 that requires the county to specify a public purpose for nonprofit awards and disclose amounts, after a San Francisco Chronicle report revealed supervisors directed roughly $51 million to groups like the Livermore Valley Winegrowers and the Association of Realtors over seven years. Board President David Haubert called the law an "overreach" and "political retribution," while state Sen. Aisha Wahab, the bill's author, said it is needed to prevent pay-to-play politics and protect vulnerable residents like foster youth.

read4 min views1 publishedSep 1, 2026
Alameda County considers legal challenge to new rules for millions in nonprofit awards
Image: Mercurynews (auto-discovered)

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Trinity Audioplayer ready...Alameda County supervisors will face tighter rules over the tens of millions of public dollars they direct to nonprofits and other organizations under a new state law that county leaders are considering challenging in court.

Authored by state Sen. Aisha Wahab and signed by Gov. Gavin Newsom on Aug. 27, Senate Bill 1193 mandates that the county specify a public purpose for money awarded to nonprofits, prohibits any awards without a public purpose, and requires public disclosure of the amount and purpose of any future awards. The law will take effect in January.

“We believe that is an overreach, and our county counsel has advised as such. We are preparing a written legal opinion, we will be discussing this in an upcoming closed session in the near future,” Board President David Haubert told Bay Area News Group on Monday. “County supervisors know the needs of their community better than Sacramento legislators, we should be allowed to use our funds accordingly.”

Wahab celebrated the bill’s signing. She said she wrote the bill with vulnerable residents, such as foster youth, in mind. She has campaigned for the bill as a way to prevent county leaders from providing money to nonprofit organizations for political favors and access.

The county recently faced public scrutiny after a San Francisco Chronicle report revealed supervisors directed roughly $51 million in the last seven years to organizations such as the Livermore Valley Winegrowers, the Association of Realtors, and other groups.

“Alameda County is failing vulnerable children while facing chronic vacancies, serious public-safety breakdowns, and a state corrective action plan,” Wahab told the Bay Area News Group on Monday. “After millions in settlements, documented government failures, and repeated allegations of conflicts of interest and pay-to-play politics, this board should be demanding more transparency – not fighting it.”

Wahab, a former foster child with a doctorate in social work, for months has railed the county for its handling of foster youth.

A 2025 state audit documented understaffing and serious failures in cases involving the deaths of children under county supervision.

Over the last several months, county supervisors denounced the bill, with Haubert previously saying it puts the county “under attack.”

On Monday, Haubert called the bill “poor legislation,” and said it should apply to all counties statewide, not just Alameda County.

The law comes after Haubert’s office recently received public scrutiny following accusations by Livermore resident Kiersten Skov. She said Haubert’s chief of staff, Shawn Wilson, tried to bribe her with money allocated for nonprofit donations in exchange for staying silent about a garbage billing dispute.

Wilson has previously denied offering any bribes to Skov. Haubert previously told this Bay Area News Group that he stands behind Wilson and that he believes Wilson will be “exonerated.”

County records reviewed by this news organization Monday show that Wilson remained in his regular capacity in Haubert’s office through Aug. 12. Haubert previously declined to comment when asked if Wilson had been placed on administrative leave.

Haubert called the new law “political retribution.” He said Wahab is targeting the county because several supervisors endorsed her opponent, BART Board President Melissa Hernandez, in the Congressional District 14 race to replace former Rep. Eric Swalwell, who resigned after multiple women accused him of sexual misconduct.

Wahab denied that the bill was political retaliation.

Wahab first introduced the bill in February, weeks after Hernandez launched her campaign and after several supervisors endorsed her. Wahab is endorsed by the state and county’s Democratic Party.

Supervisor Lena Tam in an Aug. 17 letter to Newsom requested that he veto the bill, which she said included language that is “overly restrictive and broad and would impede the county’s ability” to provide certain services.

Tam claims the county will suffer setbacks to services such as public works, healthcare, housing and social services under the new law. Tam and other supervisors claim SB 1193 will undermine the county’s authority by “imposing an overly restrictive definition of discretionary funding that limits the county’s flexibility to partner with (community based organizations), directly impeding our ability to deliver responsive, effective services and advance our shared vision.”

Wahab criticized the board’s willingness to possibly use county resources to pay for a legal challenge.

“Not a single legislator opposed SB 1193, yet the supervisors are spending taxpayer dollars to protect discretionary funds from greater public scrutiny,” Wahab said. “They act as if the rules shouldn’t apply to them. SB 1193 brings long-overdue transparency and accountability to Alameda County. If the board has nothing to hide, why is it fighting so hard to keep the public in the dark?”

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