Newsom Vows to Take Away Funding From Cities and Counties for Not Clearing Encampments

Gov. Gavin Newsom on Thursday had a message for local governments: Clean up homeless encampments now or lose out on state funding next year.

Standing in front of a cleared homeless encampment in Los Angeles, Newsom vowed to start taking state funding away from cities and counties that are not doing enough to move people out of encampments and into shelters. The governor joined the California Department of Transportation, known as Caltrans, on Thursday to clear several encampment sites in the area.

“I want to see results,” Newsom told reporters at a news conference. “I don’t want to read about them. I don’t want to see the data. I want to see it.”

Thursday’s announcement was part of Newsom’s escalating campaign to push local governments into doing more homeless encampment sweeps. Newsom last month ordered state agencies to start clearing encampments on state land. He also pressured local government to do the same, though he cannot legally force them to act.

The executive order came after the U.S. Supreme Court overturned a lower court ruling that said governments could not force people to leave encampments if there weren’t any shelter beds available. Newsom’s administration wrote in support (PDF) of cities’ arguments that previous rulings, including one that barred San Francisco from clearing encampments, have prevented the state from solving a critical problem.

California is home to roughly one-third of the nation’s population of homeless people, a problem that has dogged Newsom since he took office. There are thousands of tents and makeshift shelters across the state that line freeways and fill parking lots and public parks.

The state has spent roughly $24 billion under Newsom’s leadership to clean up streets and house people. That includes at least $3.2 billion in grants given to local government to build shelters, clear encampments and connect homeless people to services as they see fit, Newsom said.

Those have been unprecedented investments from the state, he added, but his administration will start redirecting that money in January.

“This is not about criminalization,” Newsom said. “What’s criminal is neglecting people that are struggling and suffering and dying on our watch.”

It’s not the first time Newsom has vowed to cut funding over what he sees as the lackluster efforts from local governments to address homelessness. In 2022, he threatened to withhold $1 billion in homelessness spending from cities and counties over the lack of progress. Last month, his office clawed back a $10 million grant sent to San Diego to build tiny homes because the county didn’t act fast enough.

San Francisco’s mayor has taken more aggressive action in clearing encampments.

However, others, including Los Angeles Mayor Karen Bass and Los Angeles County officials, have pushed back, saying the governor’s approach won’t work. Newsom on Thursday praised Bass’ work at successfully reducing the number of people sleeping outside in Los Angeles, adding that his frustration is mostly directed toward counties.

California State Association of Counties, which represents 58 counties in California, said it won’t weigh in on the governor’s announcement on Thursday. A spokesperson instead pointed to a statement in response to Newsom’s order last month that the counties “will continue to work together with the Governor and share his sense of urgency.”