California has long been at the forefront of efforts to address homelessness, yet the issue remains a prominent concern for both leaders and residents. Despite repeated pledges, including Gov. Gavin Newsom’s 2020 assertion that “homelessness can be solved,” the state allocates less than 0.5% of its budget to aid the estimated 181,934 people experiencing homelessness on any given night.
Public sentiment reflects the urgency of the problem. In 2023, a Quinnipiac University poll found that 22% of registered California voters considered homelessness the most pressing issue facing the state. By 2025, a majority of voters indicated a need for improved state performance on homelessness and housing, as highlighted in a Politico and University of California Berkeley poll.
Examining Budget Allocations
Research conducted by the University of Southern California’s Homelessness Policy Research Institute reveals that California’s spending on homelessness has remained relatively unchanged as a percentage of the state budget. The fiscal year ending in June 2026 sees approximately $1.5 billion allocated, which represents 0.47% of the state’s $321 billion general fund.
This percentage is consistent with pre-pandemic levels. For instance, in 2020, $1.1 billion was dedicated to homelessness programs, equating to roughly 0.46% of the budget.
Fluctuations During the Pandemic
The COVID-19 pandemic temporarily increased funds available for homelessness due to substantial budget surpluses. In 2022, California allocated $5.8 billion, making up 2.1% of the general fund. Although spending decreased in subsequent years, it remained briefly elevated at $4.7 billion in 2023.
Despite this surge, the overall number of homeless individuals did not see an immediate decrease, although the rate of increase slowed. By 2025, the state reported a modest decline in homelessness for the first time in years.
Supplementary Funding
The federal government’s contribution to homelessness is significantly smaller compared to California’s, with the Housing and Urban Development Department allocating $4 billion in 2024. California receives about $700 million annually from federal programs such as the Continuum of Care and Emergency Solutions Grant.
Local governments have also taken initiatives to bridge funding gaps. Los Angeles, for instance, launched several measures, including Measure HHH and Measure H, to bolster homelessness services. In 2024, Measure H was replaced by Measure A, anticipated to raise over $1 billion annually.
San Francisco has adopted similar strategies, with Proposition C in 2018 establishing a business tax to fund homelessness initiatives. Private foundations like the Conrad N. Hilton Foundation also contribute by supporting various homelessness projects.
