Newsom: Cities, counties must visibly reduce homelessness or lose state funds

California Gov. Gavin Newsom announced that he will start reallocating state funds from cities and counties that fail to show clear progress in addressing homelessness. Newsom called for visible improvements to a growing issue that has long challenged the state — a rising homeless population.

This latest measure is a response to cities and counties that, according to Newsom, are not doing enough. The governor also said they are not fully utilizing what he describes as “an unprecedented amount of resources” provided by the state.

California has the largest homeless population in the country. Around 180,000 of the 653,000 individuals experiencing homelessness nationwide residing in the state.

Earlier this year, Newsom signed an executive order directing state agencies to clear homeless encampments from state-owned land and urged local governments to implement similar measures.

This week, Newsom took direct action by helping workers clear a homeless camp in Los Angeles. He used the opportunity to sharply criticize local officials for not effectively using state resources to reduce homelessness.

“I want to see results, not just read about them or see the data,” Newsom said. “I want to see people back on their feet and the streets cleaned, with tents removed.”

Newsom echoed the frustrations of millions of Californians who want to see tangible results. If local governments do not show visible progress, their state funding could be at risk . Newsom indicated that funds might be redirected as early as January, which is when the state reviews its budget.

While there is broad agreement that the number of people living on the streets is unacceptable, finding solutions remains contentious. Some municipalities have pushed back against Newsom, arguing that removing encampments could lead to vulnerable individuals being arrested.

In response, Newsom emphasized that his executive order does not address citations or criminalize homelessness.

"This is not about criminalization," Newsom said. "What’s criminal is neglecting people who are struggling, suffering, and dying on our watch. That’s criminal."

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