California allocates $419M to major cities to fight homelessness
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California's homelessness crisis remains the largest in the nation. Photo: Tayfun Coskun/Anadolu Agency via Getty Images
California is allocating $419 million to boost shelter and housing programs in the state's largest cities — San Francisco, Los Angeles and San Diego — where homelessness has remained persistently high.
Driving the news: Gov. Gavin Newsom announced the new money Friday alongside San Francisco Mayor Daniel Lurie as part of the state's latest funding rollout of its flagship homelessness program.
- Newsom touted a 9% drop in unsheltered homelessness in 2025, the largest decrease in 15 years.
Zoom in: San Francisco is expected to receive $39.9 million for two homeless shelters and three navigation centers through June 2029, with the capacity to assist about 600 adults and 75 youths nightly.
- San Diego will receive $50.9 million and Los Angeles County will receive $328.8 million for similar efforts.
What they're saying: "Extraordinary progress is being made in San Francisco," Newsom said while speaking to reporters at the Friendship House, an addiction treatment center. "But our state of mind is now anchored on promoting even more progress."
Friction point: California State Association of Counties CEO Graham Knaus expressed frustration that it's taken 18 months since the funds were approved for just three jurisdictions to receive the homelessness funds, adding that the delay has left many communities without needed support.
- "How much longer do unsheltered Californians in the other 55 counties have to wait?" he said in a statement.
The big picture: The funding initiative announced Friday is part of the state's broader plan to reduce homelessness by combining support for shelter services with mental health treatment, new housing construction and tighter oversight of how cities spend state dollars.
- Proposition 1, narrowly passed by voters in 2024, unlocked billions in bond funding to expand behavioral health treatment and supportive housing for people with severe mental illness and addiction.
- Though the rollout has moved quickly, some advocates have raised concerns that the rush may be overlooking whether the investments match the state's most urgent needs.
What's next: Newsom has proposed an additional $500 million for homelessness and housing services from the Homeless Housing, Assistance and Prevention program in the 2026–27 budget.