Newsom rejects oversight bills for homelessness spending after state lost track of billions

Gov. Gavin Newsom (D-CA) vetoed two bills designed to oversee state funding for homelessness programs after California agencies lost track of roughly $24 billion.

The Democratic governor announced Wednesday that he would not sign AB 2903 . The legislation, which Republican Assemblyman Josh Hoover spearheaded, would have required state agencies and departments administering homelessness programs to deliver annual reports to the California Interagency Council on Homelessness and disclose findings to the public.

“While I fully support efforts to increase accountability and the effectiveness of our state homelessness programs, similar measures are already in place,” Newsom wrote in a veto message.

“I recently signed Assembly Bill 799, which addresses the same objectives as this bill in a more targeted and cost-effective manner,” he continued.

Hoover blasted Newsom for vetoing his bill, arguing further accountability was needed and that the governor “is doubling down on his failed response to homelessness.”

Governor Newsom is doubling down on his failed response to homelessness. Our state has spent billions of taxpayer dollars in recent years only to see the homeless population increase statewide. We will not solve this crisis until we get serious about accountability. https://t.co/r1jqt8Z8nT

“Our state has spent billions of taxpayer dollars in recent years only to see the homeless population increase statewide. We will not solve this crisis until we get serious about accountability,” he wrote in a post to X following Newsom’s veto.

Newsom’s move marks the second time this year he has vetoed a bill increasing oversight over homelessness funding. He rejected similar legislation authored by state Republican Assemblyman Joe Patterson over the summer.

Similar to his argument against Hoover’s bill, Newsom said budget laws passed this year had already put acountability in place for homelessness funding.

“This was a bipartisan bill with no opposition," Patterson said after Newsom vetoed AB 2570 in July. "Clearly the Legislature agreed on the need to rein in Newsom’s wasteful spending on ineffective homelessness programs. I’m glad we were able to get some safeguards written into the budget, but the state can’t keep cutting corners on accountability when dishing out billions of taxpayer dollars and seeing the problem get worse.”

Patterson took to social media to criticize Newsom’s latest act to block his colleague’s homeless spending legislation.

“Why doesn’t Newsom want more accountability in homeless spending?” he questioned in a post to X.

In addition to this veto here of @joshua_hoover ’s bill, Governor Newsom also vetoed a bipartisan bill of mine aimed at bringing more transparency and daylight to homeless spending of a specific program. Why doesn’t Newsom want more accountability in homeless spending? 🤔 https://t.co/1QgbSVzbRN

An audit of homeless funding released by the California Interagency Council on Homelessness in April revealed the state had lost track of nearly $24 billion for homelessness and housing between 2018 and 2023.

“When pressed, representatives from the California Department of Housing and Community Development (HCD) and the Interagency Council on Homelessness (ICH) admitted they have no data to share on existing homelessness programs and investments,” Hoover wrote in May following a committee hearing on the audit’s report.

“In fact, ICH claimed they would need even more money to implement transparency measures recommended by the State Auditor. This is completely unacceptable," he concluded.

Homelessness in the state increased by over 30% during the same period. Over a third of the country’s homeless population inhabits California, while the state accounts for 50% of all people counted in unsheltered locations.

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A ruling handed down by the Supreme Court in June that allowed states to ban people from sleeping and camping in public areas has recently given California more leeway in clearing homeless encampments.

After Newsom celebrated the decision to give authorities the ability "to implement and enforce policies to clear unsafe encampments from our streets," some major California cities have taken action to target homeless camps in public areas. Los Angeles, San Francisco, and Oakland , all hot spots for homelessness, have since taken drastic action to clear their streets and sidewalks.