With two weeks to go before the state budget deadline, local governments are hoping the Legislature can toss them a lifeline and help them secure more state dollars for homelessness.
Gov. Gavin Newsom’s 2025-25 budget proposal did not include any Homeless Housing, Assistance and Prevention (HHAP) funds, even though city and county leaders say that money is crucial to curbing the problem.
“One thing’s clear, if you take that money away, there’ll be more people on our streets,” warned Sacramento Mayor Kevin McCarty.
“We certainly are 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.
The lack of funding underscores a deepening rift between Newsom and the state’s localities. The Governor has blamed local governments for a crisis that exploded under his watch.
“How do people get reelected?” the Governor asked without a hint of irony. “Look at these encampments, they’re a disgrace.”
While Newsom continues to demand accountability from local leaders, many say he’s denying them the tools they need to do the job. Their message is simple: don’t scapegoat us while cutting off the necessary funding.
GrassrootsLab co-founder and California City News Editor Mike Madrid isn’t surprised by the finger pointing. Homelessness is Newsom’s biggest vulnerability, and it has the potential to derail his presidential ambitions.
“…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 told CapRadio.
This crisis has been escalating for years. A solution by 2026 is inconceivable. For California’s local governments, that means the blame shifting is likely to continue.