New federal report shows declines in homelessness amid proposed state funding cuts
Cal Cities is urging state leaders to fully restore HHAP funding and make it ongoing
By Caroline Grinder, legislative advocate (community services)
A newly released federal report shows that overall homelessness declined in California by 2.8% between 2024 and 2025. California also made substantial gains in addressing unsheltered homelessness, with a 6.8% drop — more than any other state.
“California’s work to confront the homelessness crisis is delivering real results,” Gov. Gavin Newsom said in a press release. “Through sustained partnership at the state and local level, we’re building more housing, expanding care and treatment, and connecting people to the support they need.”
Paradoxically, the data arrives as Newsom proposes deep cuts to the state’s largest homelessness grant program for local governments: the Homeless Housing, Assistance, and Prevention (HHAP) Program. The Governor wants to slash the next round of HHAP to $500 million, half its historic funding level. California’s largest cities estimate that the proposed cut would result in a loss of 6,000 shelter beds statewide, forcing thousands of people back to the streets.
Cal Cities and its allies are urging the Governor and the Legislature to restore HHAP funding to $1 billion and make the program ongoing. “At the same time, the Governor touted the state’s progress on reducing unsheltered homelessness, he proposes cutting round 7 of the Homeless Housing, Assistance and Prevention grant program — the backbone of the state’s local homelessness response system,” Carolyn Coleman, Cal Cities executive director and CEO, said in a statement in mid-May. “This will slow hard-won progress by forcing cities to close shelter beds and reduce homelessness prevention programs. Cities need an ongoing funding commitment to reduce the homelessness crisis, not a decrease in funding.”
The 2024-25 federal estimate marked the state’s largest reduction in unsheltered homelessness in 16 years. About two-thirds of California’s total homeless population is unsheltered. California also saw drops in homelessness among other key populations, leading the nation in reducing homelessness among veterans, youth under the age of 25, and people experiencing chronic homelessness.
Lawmakers must pass a balanced budget by June 15. Both the Senate and Assembly have proposed budget frameworks that would restore critically needed HHAP funding. Cal Cities will continue to advocate for resources that have proven instrumental to the state's progress in addressing homelessness.