If state funding vanishes, California’s homelessness crisis will explode

As two former members of the California Legislature, we understand the complexities and tough fiscal choices that come with a tightly constrained budget. As mayors of two of California’s largest cities, and members of the state’s Big City Mayors coalition, we also know the devastating consequences of abandoning a statewide commitment to address the homelessness crisis — a crisis driven by decades of underinvestment and inadequate housing production.

Homelessness is by far the most pressing issue facing communities up and down California, and the money the state has invested through the Homeless Housing, Assistance and Prevention Grant Program, known as HHAP, has had an enormous impact on our ability to get unhoused people off our streets.

That’s why we’re concerned that the proposed state budget does not include another round of funding for the program. HHAP grants — which for California’s biggest cities, with the biggest homeless populations, run into the millions of dollars — are essential to meet the goal of reducing encampments and getting unsheltered Californians on a path to permanent housing. Simply put, without these grants the state’s homelessness problem will balloon.

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Thanks to HHAP, our two cities have seen significant reductions in homelessness. In January, San Diego’s point-in-time count showed a 14% drop compared with 2024. Sacramento, where the most recent count was last year, achieved a 29% drop over two years. Previous rounds of HHAP funding allowed us to develop innovative, locally tailored solutions, resulting in real progress for thousands of our most vulnerable residents. Since HHAP’s inception in 2019, California’s 13 largest cities have used the state funds to create 17,691 shelter beds, connect more than 152,000 people to shelter, build 2,295 permanent housing units and place 42,215 Californians into temporary or permanent housing solutions.

In Sacramento, HHAP resources support more than 1,300 units of emergency shelter and hundreds of permanent supportive housing units. San Diego has doubled its citywide shelter capacity, expanded street outreach teams and created new interventions, including its Safe Parking Program for people living in their cars.

We understand that addressing homelessness is costly, and yet leaving people on the streets is far more expensive. Our police officers and firefighters find themselves on the front lines of the crisis, and that drives up costs for taxpayers. Businesses and schools are left to pick up the tab, too.

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We recognize the importance of accountability. Our backgrounds as former legislators have taught us the value of fiscal responsibility, transparency and showing results with public dollars. California’s big cities are committed to ensuring HHAP funds are spent wisely and effectively. Big City Mayors tracks and reports how HHAP dollars are used, and we welcome additional oversight to ensure every dollar achieves maximum impact.

The data prove that previous state investments are making a real difference. But the scale of the crisis demands sustained investment. We are at a critical juncture. As the Trump administration retreats from its responsibilities on homelessness, it’s more important than ever for California to lead.

The human cost of inaction is immense. Every day, we see the faces of those who are struggling — veterans, families, children and people with disabilities. And every day, we see what’s possible when someone is moved from the sidewalk into shelter and then into a home.

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We urge the Legislature to meet this moment by fully funding HHAP at $1 billion — with a state general fund of more than $225 billion to work with, that should be possible.

The challenge of homelessness is not insurmountable — but we cannot afford to go backward. With support, our cities can continue their work making homelessness in the Golden State rare, brief and non-recurring.

Todd Gloria is the mayor of San Diego and Kevin McCarty is the mayor of Sacramento. Both are former members of the California Legislature, and members of the 13-city California group Big City Mayors.