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Homelessness Crisis Looms Large in Newsom’s May Budget Revision

May 20, 2026

Governor Gavin Newsom's revised 2026-27 budget proposes cutting the Homeless Housing, Assistance and Prevention (HHAP) program funding in half, from $1 billion to $500 million, despite warnings from mayors of California's largest cities that this reduction could eliminate thousands of shelter beds and force tens of thousands back onto the streets. Newsom defends the allocation as "new money" rather than a cut, arguing it reflects the end of federal COVID funding and a transition to performance-based accountability standards. The reduction comes amid evidence that HHAP investments have produced measurable results, including a 9% drop in unsheltered homelessness, though a 2024 state audit criticized California for spending $24 billion on homelessness over five years without adequately tracking outcomes.

Who is affected

  • Black Californians (disproportionately represented at 28-32% of the unhoused population despite being only 6% of the state's population)
  • Up to 41,000 people currently housed or in temporary shelter who could be at risk of returning to homelessness
  • Unhoused individuals across California who may lose access to approximately 6,000 shelter beds
  • Local governments and cities, particularly California's 13 largest cities represented by the "Big City Mayors Coalition"
  • Specific mayors mentioned: Rex Richardson (Long Beach), Barbara Lee (Oakland), Todd Gloria (San Diego), and Patricia Lock Dawson (Riverside)
  • More than 90,000 Californians who have secured permanent housing since 2023

What action is being taken

  • Gov. Newsom is proposing a revised 2026-27 budget that includes $500 million for HHAP
  • The state is shifting toward stricter accountability standards based on a performance-based model for local governments receiving homelessness funds
  • The Big City Mayors Coalition traveled to Sacramento in April to advocate for maintaining $1 billion annual investment

Why it matters

  • The HHAP funding reduction matters because it threatens to reverse documented progress in addressing California's homelessness crisis, including a 9% reduction in unsheltered homelessness in 2025 and a 24% decline in youth homelessness since 2019. The impact is particularly significant for Black Californians, who face disproportionate rates of homelessness due to generations of anti-Black racism embedded in housing and economic policies. The funding decrease could eliminate critical shelter capacity and housing stability for tens of thousands of vulnerable Californians at a time when early data shows homelessness prevention strategies are working. Additionally, this decision reflects broader tensions between maintaining social programs and addressing budget deficits, while responding to criticism about the effectiveness of California's $24 billion in homelessness spending over five years.

What's next

  • No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint