Newsom’s Plan to Address California’s Homeless Crisis

California Governor Gavin Newsom has outlined a comprehensive multi-billion dollar strategy to confront the pressing issue of homelessness in the state. He is urging both cities and counties to take “immediate action.”

On Monday, he introduced a city-county model ordinance designed to address dangerous and unhealthy encampments right away, facilitating connections for homeless individuals to shelters and essential services. Newsom emphasized, “There’s nothing compassionate about people dying on the streets.”

In his announcement, Newsom pointed out, “Local leaders sought resources. They received the largest national investment in history and the courts provided the necessary legal clarity. Now we are offering a model that enables urgent and humane solutions to connect individuals to shelter, housing, and care.”

A significant part of the ordinance is backed by a newly introduced $3.3 billion from Proposition 1. The governor stressed that local governments must act without hesitation.

Furthermore, Newsom encourages local officials to utilize powers affirmed by the U.S. Supreme Court to address encampments effectively. His office reiterated the necessity for local governments to adopt and implement policies without delay.

The model ordinance is based on California’s “proven and viable approach” that successfully cleared over 16,000 camps and more than 311,873 cubic yards of waste between July 2021 and May 2025. “These results indicate that our policies are both effective and scalable, providing a practical framework for jurisdictions to resolve issues with urgency and dignity,” he added.

Additionally, Newsom’s release highlighted that, alongside the $3.3 billion funding from Proposition 1, proposals are underway to enhance behavioral health housing and treatment options to address severe mental health issues and homelessness in California.

The guidance provided is not intended to enforce a one-size-fits-all approach. Adjustments are expected to accommodate different local needs and priorities. Notably, the guidance does not specify whether criminal penalties should be applied, leaving enforcement decisions to the respective cities.

Local guidelines should adhere to three principles:

• No one should face criminal penalties for sleeping outdoors when there are no alternatives.
• Camping policies must prioritize shelters and services, treating individuals experiencing homelessness and their belongings with respect.
• The policy must not unduly limit local governments in clearing camps, allowing for “common sense policies” to safeguard public health and safety.

The announcement comes after a Supreme Court ruling, which determined that laws against sleeping in public areas do not breach constitutional protections against “cruel and unusual punishment.”

In addressing the issue of homeless encampments, Newsom’s office has also unveiled the $3.3 billion in grant funding aimed at creating treatment beds for over 5,000 residential and more than 21,800 outpatient treatment slots for behavioral health services. “When Californians voted for Proposition 1 in March 2024, they demanded swift action to address the behavioral health crisis,” the governor’s office noted.

As part of this initiative, the funding from Proposition 1 will further enhance existing behavioral health programs, ultimately establishing 6,800 residential treatment beds and 26,700 outpatient treatment slots. Kim Johnson, secretary of the California Department of Health and Human Services, stated, “Today marks a critical milestone in our pledge to transform California’s behavioral health system.”

Moreover, the Department of Housing and Community Development will manage up to $2 billion from Proposition 1 to establish permanent supportive housing for veterans and others at risk of homelessness who also grapple with mental health or substance use issues. “This is a generational investment in the future of California’s behavioral health,” reiterated state health director Michelle Bath.

In summary, Newsom’s announcement underscores a pivotal commitment to addressing homelessness and enhancing behavioral health services throughout California.