California Announces $419 Million in New Homelessness Funding Following Statewide Drop in Unsheltered Population
Photo Credit: California Governor’s Office
SAN FRANCISCO, January 19, 2026 (CALIFORNIA NEWS TODAY) — The State of California has announced more than $419 million in new funding to expand homelessness services and shelter capacity across San Francisco, Los Angeles, and San Diego, following a reported 9% statewide reduction in unsheltered homelessness.
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The funding is part of the Homeless Housing, Assistance and Prevention (HHAP) program and represents the first allocation from HHAP Round 6. The announcement follows voter approval of Proposition 1 in 2024, which authorizes additional funding for housing, mental health, and behavioral health services.
“We put Proposition 1 on the ballot because Californians are demanding we do more to confront the mental health crisis and the homelessness emergency head-on. Voters gave us the tools and we are putting them to work, delivering treatment, housing, and real support, and proving that this state can lead the way on a challenge facing the entire nation. Our state investments have launched critical programs for local communities. Together, we’re breaking cycles of homelessness that took decades to create — and we’re doing it with urgency, compassion, and accountability,” said Governor Gavin Newsom.
The $419 million allocation includes $328.8 million for Los Angeles County and surrounding jurisdictions, $50.9 million for San Diego County, and $39.9 million for San Francisco. The funds will support emergency shelters, interim housing, permanent supportive housing, rapid rehousing, and encampment resolution efforts.
State officials said HHAP Round 6 includes enhanced accountability requirements, including housing compliance standards and the ability to reclaim funds from jurisdictions that fail to demonstrate progress. Additional HHAP funding rounds are planned, including a proposed $500 million Round 7, subject to performance requirements.
Local leaders cited the funding as critical to ongoing efforts to reduce street homelessness.
“In San Francisco, we are changing our approach to homelessness to get people off the streets and on a path toward stability. In December, we reached a record-low number of encampments—down 44% from 2024. But we can’t do this alone. The resources provided by the state are crucial—whether that’s Prop 1, HHAP dollars, or funding to make sure our freeway on-ramps and off-ramps are clean. I want to thank Governor Newsom for helping make that progress possible. We have more work to do, but we are now on the right track, and with strong partnerships and continued investment, we will keep moving forward,” said San Francisco Mayor Daniel Lurie.
Proposition 1 funding is expected to support the creation of thousands of behavioral health treatment beds and outpatient slots statewide. The state reported that since 2019 it has invested billions in housing and homelessness programs, including Homekey and Encampment Resolution initiatives.
For more information, visit www.ca.gov.
Source: Office of Governor Gavin Newsom
