Newsom’s $24 billion loss: California has worst homeless rates in nation after record spending

California is now home to more than a third of the nation’s homeless population, despite Gov. Gavin Newsom ’s (D-CA) $24 billion bid to solve the crisis.

After a state audit revealed California failed to track more than $24 billion in taxpayer funds targeting homelessness, Newsom has faced criticism for his leadership on the issue. The report revealed that the California Interagency Council on Homelessness, the state agency that oversees homelessness, did not provide “accurate, complete, and comparable financial and outcome information from homelessness programs.” Cal ICH consists primarily of Newsom appointees.

Less than two weeks after the report broke, Newsom announced Cal ICH would administer another $200 million in grant funding to assist California cities and counties in moving homeless people from encampments into subsidized housing. At the time, Newsom seemed to sidestep criticism of Cal ICH’s failure to track funds, as he urged local leaders to provide greater oversight over funding.

“As the state provides unprecedented resources like this, we also expect accountability,” Newsom said in April. “Local governments must ensure this funding is being utilized on the ground.”

During his State of the State address last week, Newsom defended his efforts to reduce California’s homeless population.

“No state has done as much as California in addressing the pernicious problem of homelessness that too many politicians have ignored for too long,” he said. Newsom has ushered in a 60% budget increase over his tenure as governor. Since taking office in 2019, his state budget has increased from $201.4 billion to $454.7 billion in 2023.

Despite the Democratic governor’s efforts, homelessness has risen 53% in his state since 2013.

California’s largest city, Los Angeles, has seen a slight decline in its homeless population. After spending $250 million to address the issue, last week Los Angeles Mayor Karen Bass celebrated a 2.2% overall decline in homelessness. Bass’s “Inside Safe” initiative was a push to reduce homeless encampments by transferring individuals to hotels. The taxpayer-funded program costs $17,009 per individual per month.

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The Supreme Court’s recent ruling will have implications for how the Golden State chooses to approach homeless encampments. The court upheld an Oregon ban on homeless people sleeping outdoors, striking down a San Francisco court that ruled imposing criminal penalties on homeless encampments violated the Constitution.

Newsom celebrated the high court's decision, saying it gave state officials the "authority to implement and enforce policies to clear unsafe encampments from our streets."