Published on June 01, 2026
The City of Menlo Park continues to support San Mateo County's efforts to restore $157 million in Vehicle License Fee (VLF) backfill funding in Sacramento. Since the start of the year, the County, with the support of Menlo Park and cities across the region, the full San Mateo state delegation, labor groups, and community partners, has successfully raised awareness of the VLF shortfall issue at the state level.
On May 14, Governor Newsom released his revised state budget, which did not include the County's VLF backfill request. This outcome was anticipated and the funding can still be restored through the legislative budget process, which must be completed by June 15. The coming weeks represent a critical advocacy window, as budget decisions will now be shaped by legislative leadership, including Senate President pro Tem Monique Limon, Assembly Speaker Robert Rivas and the chairs of both chambers' budget committees.
Prior to the May revision, the California State Department of Finance indicated it would not pursue a permanent legislative fix, despite prior commitments to do so. The County remains committed to pursuing a long-term solution and Menlo Park will continue to stand alongside the County in advocating for full VLF funding in this year's state budget — a matter of fairness and of honoring a commitment maintained for 55 other counties.
A lawsuit filed by the County remains in its early stages, with the State filing a general response denying the allegations and asserting that VLF backfills are discretionary rather than a legal obligation. Next steps in the litigation will be assessed following the conclusion of the state budget process.