California's Enduring Homelessness Crisis Persists Despite Billions and Decades of Prioritization

A recent social media post by Kevin Dalton has drawn attention to Governor Gavin Newsom's long-standing commitment to addressing homelessness, highlighting a consistent statement from Newsom across more than two decades: "Homelessness is my #1 priority." This recurring declaration, spanning from 2004 to 2025, underscores the persistent and complex nature of California's homelessness crisis, which continues to challenge the state despite significant financial investment and policy initiatives.

Governor Newsom's engagement with homelessness dates back to his tenure as Mayor of San Francisco. In 2004, he launched the "Care Not Cash" program, aiming to redirect cash assistance to unhoused individuals towards housing and services. He also introduced a 10-year plan to end chronic homelessness in San Francisco, which included creating thousands of supportive housing units. While these efforts placed over 11,000 residents into permanent supportive housing and built 2,600 new units, San Francisco's unhoused population still saw a significant increase after he left office.

As Governor, Newsom has continued to prioritize the issue, investing unprecedented sums. His administration has allocated over $27 billion to combat homelessness, including a $12 billion funding package in 2021 and a recent $3.3 billion from Proposition 1 for behavioral health and housing. Key initiatives like Project Roomkey and Homekey have converted motels into housing, providing shelter for tens of thousands. Despite these efforts, California's homeless population has grown, reaching over 180,000 individuals, with approximately 70% unsheltered, making it the highest in the nation.

The state's approach, heavily reliant on the "Housing First" model, has faced criticism. While intended to provide immediate housing, some argue it has not adequately addressed underlying issues like mental health and substance abuse, which affect a significant portion of the unhoused population. The high cost and slow pace of building permanent supportive housing, with some units costing upwards of $600,000, further complicate efforts.

Recent months have seen increased tension between Governor Newsom and local officials regarding accountability. Newsom has pushed for local governments to clear encampments, releasing a model ordinance and conditioning state aid on demonstrable results. "There’s nothing compassionate about letting people die on the streets," Governor Newsom stated in May 2025, urging local leaders to act with urgency. However, local officials often argue that year-by-year state funding makes it difficult to establish effective, long-term programs, and that encampment clearings without sufficient shelter options simply displace individuals. The ongoing "blame game" highlights the deep-seated challenges in coordinating a statewide solution.