Newsom Unveils Multi-Billion Dollar Plan to Combat Homelessness in California, Urges Local Action

California Governor Gavin Newsom has unveiled a comprehensive plan to address the state’s persistent homelessness crisis, backed by billions of dollars in funding and a push for immediate action from cities and counties. The Governor’s office released details of the plan, which includes a model ordinance for local governments to address encampments and connect individuals experiencing homelessness with shelter and services.

Newsom emphasized the urgency of the situation, stating that inaction is unacceptable. The plan is partly funded by $3.3 billion from Proposition 1, a voter-approved measure aimed at expanding behavioral health housing and treatment options for the most vulnerable populations. Newsom is urging local leaders to leverage their authority, affirmed by the U.S. Supreme Court, to tackle the encampment issue head-on.

The model ordinance is designed to provide a framework for local governments to address encampments effectively and humanely. Newsom’s office claims that the ordinance draws upon the state’s "proven and workable approach," citing data from July 2021 to May 2024 which shows that over 16,000 encampments were cleared and more than 311,873 cubic yards of debris were removed from state right-of-ways. The Governor believes these figures demonstrate the policy’s effectiveness and scalability, offering a sound framework for jurisdictions to resolve encampments with urgency and dignity.

The release of this plan follows the Supreme Court’s decision in Grants Pass v. Johnson, which ruled that laws restricting sleeping in public areas do not violate the constitutional prohibition against cruel and unusual punishment. Newsom had previously encouraged the Supreme Court to hear the case, arguing that prior court decisions had created an "unsurmountable roadblock" to addressing the crisis.

The Governor’s office emphasizes that the model ordinance is not a "one-size-fits-all" solution and encourages local governments to tailor it to their specific needs and priorities. The guidance does not mandate criminal penalties but leaves the enforcement mechanisms to the discretion of individual cities.

The Governor’s office outlined three basic principles that should guide all local approaches: prioritising connections with services, offering pathways to services and housing, and providing for enforcement of reasonable regulations.

Newsom’s office also highlighted the state’s efforts to hold communities accountable for addressing homelessness, citing the example of a lawsuit filed against the City of Norwalk in 2024 for its ban on homeless shelters. The Governor’s office also pointed out that while unsheltered homelessness increased nationwide last year, California’s increase was significantly lower than the national average and lower than that of the majority of other states. They credit Newsom with being the first governor to actively tackle the issue in California and reversing a crisis that has been decades in the making.

In addition to the encampment cleanup efforts, Newsom’s office announced $3.3 billion in grant funding to create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots for behavioral healthcare services. These funds are intended to address the behavioral health crisis that many homeless individuals face.

Newsom’s office emphasizes that these initiatives are a direct response to the demands of Californians who voted for Proposition 1 in March 2024. The aim is to provide individuals with access to the right care at the right time, whether it’s crisis stabilization, inpatient services, or long-term treatment.

When fully awarded, Proposition 1 funding is estimated to create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health. These projects will build upon other existing behavioral health initiatives in California.

Kim Johnson, Secretary of the California Health and Human Services Agency, described the funding as a critical milestone in the state’s commitment to transforming its behavioral health system. She emphasized that the investments will support community-driven solutions that expand access to care, promote equity, and meet people where they are.

Michelle Baass, Director of the state Department of Health Care Services, stated that the initiative represents a generational investment in California’s behavioral health future. She emphasized that the focus is not just on building facilities but on building hope, dignity, and pathways to healing for thousands of Californians.

The Department of Housing and Community Development will oversee up to $2 billion in Proposition 1 funds to build permanent supportive housing for veterans and others who are homeless or at risk of homelessness and have mental health or substance-use disorder challenges. This funding aims to provide long-term housing solutions for individuals with complex needs.

Newsom’s plan has been met with mixed reactions. Some applaud the Governor’s efforts to address the crisis with a comprehensive and well-funded approach. Others, however, express concerns about the potential for the plan to lead to the displacement of homeless individuals without providing adequate resources or support. Some critics argue that the plan focuses too heavily on enforcement and encampment removals and does not adequately address the root causes of homelessness, such as poverty, lack of affordable housing, and inadequate access to mental health and substance abuse services. Some also take issue with the idea of criminal penalties for those who violate the ban.

Despite the differing viewpoints, there is a general consensus that the homelessness crisis in California is a complex and multifaceted problem that requires a comprehensive and collaborative approach. Newsom’s plan represents a significant step towards addressing the crisis, but its success will depend on effective implementation, ongoing evaluation, and continued collaboration between state and local governments, community organizations, and individuals experiencing homelessness. It remains to be seen whether the plan will achieve its stated goals of reducing homelessness, improving behavioral health outcomes, and creating a more compassionate and equitable California. The effectiveness of the initiative will be closely watched by other states and cities grappling with similar challenges.