As of February 2025, California Governor Gavin Newsom announced new funding plans regarding homelessness. His plans included $920 million for homeless initiatives, which provide available funds for local governments, go towards “resolving” encampments mainly in the LA area, and support shelter and permanent housing initiatives for homeless individuals. 

While these new funding measures may have been crafted with well-meaning intentions, they come on the heels of the Supreme Court case Grants Pass v. Johnson, which gave lawmakers the ability to clear encampments without providing shelter solutions for displaced individuals and to impose penalties on homeless individuals residing in public spaces.

The fate of homeless encampments

Governor Newsom’s new accountability measures reflect that, urging local communities to clear homeless encampments in order to receive further funding. 

While homeless encampments may be an eyesore, they are a surface-level issue stemming from broader problems with housing affordability and the cost of living, especially in Governor Newsom’s home state. The solution to California’s homelessness problem is not to drive homeless individuals out of towns, but to find sustainable and affordable housing solutions and investigate the issues of mental health and addiction.

Difficulties in shelters

Individuals experiencing homelessness report losing their belongings in increased encampment sweeps and inability to access shelters due to overcrowding and other issues. These include, but are not limited to, unsanitary living conditions and violence amongst individuals staying in the shelters. According to Calmatters, the death rate in shelters was more than twice that of California jails between 2018 and 2024 at 2,007 deaths. 

Furthermore, California spent $1 billion in 2018 to add 34,000 new shelter beds, but there remain three times as many homeless people as shelter beds in the state. Only 22% of those that do end up finding room in a shelter transition into permanent housing.

What is the ultimate aim of California’s $920 billion?

Governor Newsom’s plan includes funding for the most recent round of the Homeless Housing, Assistance and Prevention (HHAP) Grant, which places emphasis on resolving encampments and creating local housing elements. However, a glaring part of Governor Newsom’s announcement was the introduction of accountability measures aligned with these points of focus, denying additional funding for jurisdictions not meeting set requirements. It remains to be seen whether new funding will contribute to the improvement of shelters and housing initiatives, or whether they will place undue emphasis on the clearing of homelessness encampments.