California is home to a quarter of the nation’s unhoused population, which amounts to around 187,000 people.
Increasingly, the governor has criticized cities and counties for not doing enough on the issue, particularly when it comes to encampments.
In the last year Newsom has taken a harder stance. Last summer, he issued an executive order requiring state agencies to adopt policies for clearing encampments. Earlier this month, he released what he called a “model ordinance” for local governments to use as they adopt policies to clear the makeshift camps that line sidewalks, freeways and riverbanks in communities across the state. The model suggested banning camping in public places for longer than three consecutive nights.
“Time to do your job, people are dying on their watch, dying on their watch,” Newsom said during a recent press conference. “How do people get reelected? Look at these encampments, they’re a disgrace.”
Since 2019, the state has provided money for local governments to combat homelessness through the Homeless Housing, Assistance and Prevention grant program, or HHAP. But, Newsom didn’t include any new HHAP grants in his latest budget proposal.
Instead, the governor said he wants to see more accountability from cities and counties that spend state dollars. His administration is tracking whether local jurisdictions are meeting certain benchmarks for shelter capacity and housing development.
“I’m not interested in funding failure anymore,” Newsom added.
Local government advocates aren’t happy with Newsom’s approach. Some say the governor’s just pointing fingers and that withholding funds will only make the crisis worse.
“We certainly are not not going to make progress, if money is being clawed back from the only entities that are doing the primary work on the ground locally and that's local government,” said Graham Knaus, CEO of the California State Association of Counties, which lobbies for county governments.
Mayors from some of the state’s largest cities rely on state homelessness grants to supplement their local budgets. They use these dollars to increase beds in local shelters, conduct outreach and provide housing services.
Some local elected leaders are pushing back against Newsom’s decision to withhold funding.
Sacramento Mayor Kevin McCarty says the state grants account for around half of his city’s homelessness budget.
“One thing’s clear, if you take that money away, there’ll be more people on our streets,” McCarty said at a recent press conference.
Others, including San Diego Mayor Todd Gloria, said the state could be doing a better job clearing encampments on its own property.
“I think we shared the governor's frustration,” Gloria said. “What I would say with respect is the worst encampments in my city are on Caltrans right of way on state-operated properties that we are not by law allowed to enter.”
This funding fight between Newsom and local representatives comes as California faces a $12 billion budget deficit. The governor and legislature will have to make tough decisions about the final budget ahead of mid-June.
But, it’s possible there’s an underlying political strategy at work here as Newsom tries to draw a line in the sand on homelessness.
“It’s a very vulnerable weakness that the governor has as he positions himself nationally,” said Mike Madrid, a Republican political consultant in Sacramento.
Madrid said the state’s homelessness crisis is one of Newsom’s biggest political liabilities, especially if he decides to run for president in 2028.
He also said homelessness is a scar on California’s reputation among other states.
“And I think as the governor is realizing that outside of this state, he's going to have to either again come up with a solution quick in the next 18 months or he's going to have to fix the blame. If you can't fix the problem, fix the blame,” Madrid said.
Unhoused Californians are stuck in the middle
As state leaders argue over homelessness funding ahead of the state’s budget deadline, people who are unhoused are stuck in the middle.
Courtney Harris lives in North Sacramento and said he’s been without a home for six years. Harris added he needs more access to basic daily items.
“We need water supply. If we're going to be out here, we need like soap, supplies, because people get germs and get sick out here,” Harris explained, as he sat under a blue tarp on a warm afternoon last week.
Harris and his unhoused neighbors are bracing for the hot months ahead, he added.
Chris, who also lives in North Sacramento, didn’t provide his last name for privacy. He said he’s noticed a shift when it comes to how governments talk about people living on the streets.
“I’ve been on and off indoors, outdoors my whole life, but I've been self-sufficient and taking care of it,” Chris said, adding he recycles cans and bottles to make money. “Not everybody's bad out here because they're homeless. Sometimes they just got the wrong cards dealt, you know what I mean?”
As thousands of people remain on the street, the governor and Legislature will decide on a final state budget ahead of their June 15 deadline.
Cities and counties say they’ll now ask state lawmakers to include funding for homelessness grants, given Newsom’s refusal.
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