‘Now is not the time to take the foot off the pedal.’ City leaders call for ongoing state funding to reduce homelessness

Make your cities voice heard and submit a letter today

By Caroline Grinder, legislative affairs lobbyist   

Cal Cities and its allies sent a letter last week to legislative leaders urging them to create a permanent funding source to address homelessness. The group called for an investment of at least $1 billion per year for the state’s flagship homelessness grant program, the Homeless Housing, Assistance and Prevention (HHAP) grant program.

“Cities cannot address the burden of homelessness alone,” said San Luis Obispo Mayor Erica A. Stewart. “Here in San Luis Obispo, we have doubled our local contribution in recent years to nearly $3.5 million annually from our general fund to reduce homelessness. While we remain deeply committed to supporting our community, the lack of ongoing state funding continues to hinder our efforts and makes sustainable progress impossible.”

Gov. Gavin Newsom’s proposed January budget did not include any new funding for the state's growing homelessness crisis. City leaders throughout the state have expressed alarm over the absence of funding. 

“The city of Long Beach has leveraged state HHAP dollars efficiently, and we are seeing real results that are saving lives,” said Long Beach Mayor Rex Richardson. “These funds helped expand our shelter and services capacity, which contributed to an overall reduction in homelessness in our city. Now is not the time to take the foot off the pedal on our statewide homelessness response. We should double down on our efforts to expand housing and services to help more people permanently exit homelessness.”  

The letter emphasizes the importance of HHAP funding in communities across California. The funding has connected over 225,000 Californians to shelter, services, and housing between January 2023 and June 2024. Over 50,000 Californians exited homelessness for good through permanent housing during that period because of HHAP funding.

Local leaders have long argued that the state’s funding system makes sustaining long-term, comprehensive services difficult. Many supportive service programs were designed as short-term emergency responses, not as solutions to a protracted humanitarian crisis. Effective programs need ongoing funding to deliver meaningful, long-term change.

“All people have value. Regardless of income, our residents should be able to afford groceries, pay their light bills, and above all else, have a place to call home,” said Eureka Mayor Kim Bergel. “California cities of all sizes are committed to reducing homelessness and providing services, but our efforts alone are not enough. We need the state to invest in ongoing funding to ensure every Californian can afford a roof over their head and access the services they deserve.”

According to a recent Cal Cities survey, almost 90% of cities have used General Fund revenues to support homelessness programs.

“Cal Cities data shows that in nearly 70% of cities, people are falling into homelessness faster than cities can house them,” said Arcadia Mayor Michael D. Cao. “Cities are more than willing to show how we are investing our dollars to support unhoused residents and connect them with the services, but we cannot do it alone. The state is responsible for working with — not against — cities to support our residents and invest in solving this crisis.” 

How can I support Cal Cities’ budget ask?

To get involved, send a letter to the budget committee chairs urging them to support Cal Cities’ ask for ongoing funding to help cities boost the supply of affordable housing and reduce homelessness. For more information, contact your regional public affairs manager.