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Homelessness Is Dropping in California, but Funding Cuts Could Derail Progress
California counties saw a 4% drop in homelessness this year, but state and federal funding cuts threaten ongoing support for housing and services.
Several counties in California are experiencing a reduction in homelessness, a development that state leaders, including Governor Gavin Newsom, are acknowledging as a sign of progress.
This progress follows grant application processes started by Biden's administration in 2024, which Trump’s administration re-started in 2025 under new, stricter criteria requiring applicants to apply again.
The new grant conditions exclude organizations supporting trans clients, harm reduction, or operating in sanctuary cities, leading to legal challenges and major funding losses for providers like Hope Solutions and Downtown Streets Team.
Data from the Hub for Urban Initiatives shows that 29 communities in California reported a total of 131,209 homeless individuals this year, marking a 4% decline driven by significant reductions in Contra Costa, Santa Cruz, and Ventura counties.
Despite these results, funding is shrinking to $500 million next year, states are issuing one-time grants, and providers warn cuts will force service reductions, potentially reversing the homeless population decline.