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Homelessness is top of mind for many Californians. Why does the proposed budget eliminate funding for it?

  • Governor Gavin Newsom and the Legislature proposed a 2025-26 budget that eliminates all state homelessness funding, alarming cities and service providers who rely on it.
  • This zero-allocation follows years of increased spending amid a complex crisis, but critics warn this cut risks undoing tenuous progress and sending many back to the streets.
  • In Berkeley, officials planned to close a large northern encampment housing dozens living in RVs, offering cash incentives approximately $175 per linear foot to encourage moves indoors.
  • Ben Metcalf, managing director at UC Berkeley’s Terner Center, said without funding some shelters and housing programs will likely close, affecting more than 187,000 Californians experiencing homelessness.
  • The proposed funding cut signals worsening homelessness statewide while existing programs provide modest improvements but fail to permanently transition people off the streets.
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Homelessness is top of mind for many Californians. Why does the proposed budget eliminate funding for it?

State leaders have been talking a lot lately about cleaning up California’s homeless encampments and moving people indoors. But the tentative budget they’ve drawn up for the upcoming year has many asking: With what money? Both Gov. Gavin Newsom and the Legislature have proposed gutting the state’s main source of homelessness funding in the 2025-26 budget, sending a wave of panic through the cities, counties and service providers that have been r…

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CBS8 broke the news in on Monday, June 16, 2025.
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