Governor Newsom Threatens Funding Cuts Over Homeless Encampments in California

On Thursday, California Governor Gavin Newsom warned local governments to clean up homeless encampments or risk losing state funding next year.

At a press conference in Los Angeles, Newsom said he would start cutting state money from cities and counties that aren’t effectively moving people out of encampments and into shelters. He was joined by the California Department of Transportation (Caltrans) as they cleared several encampment sites.

“I want to see real progress,” Newsom said. “I don’t want to just read about it or see data. I want to see action.”

This announcement is part of Newsom’s broader effort to push local governments to take stronger action against homelessness. Last month, he ordered state agencies to start clearing encampments on state land and pressured local governments to do the same, even though he cannot legally force them.

The governor’s actions followed a U.S. Supreme Court decision that overturned a ruling preventing governments from clearing encampments without available shelter beds. Newsom’s administration supported the cities’ arguments, noting that previous rulings had hindered efforts to address the homelessness crisis.

California has about one-third of the nation’s homeless population, with tents and makeshift shelters widespread across the state. Under Newsom, the state has spent around $24 billion to clean streets and provide housing, including $3.2 billion in grants to local governments for shelters, encampment cleanups, and services.

Starting in January, Newsom plans to redirect these funds if local governments don’t improve their efforts.

“This is not about criminalizing homelessness,” Newsom said. “What’s criminal is ignoring people who are struggling and suffering.”

Newsom has previously threatened to withhold funds over inadequate local responses to homelessness. In 2022, he warned of cutting $1 billion in homelessness funding and recently reclaimed a $10 million grant from San Diego due to delays.

San Francisco’s mayor has taken a more aggressive approach to clearing encampments, but other officials, like Los Angeles Mayor Karen Bass and LA County leaders, have expressed concerns that Newsom’s strategy won’t be effective. Newsom praised Bass for reducing the number of people sleeping outside in Los Angeles but said his frustration is mainly with county efforts.

The California State Association of Counties did not comment on Newsom’s latest announcement but referred to a previous statement expressing a commitment to work with the governor on addressing homelessness.