Senator Cabaldon applauds $600 million in new funding for homelessness in budget deal
Senator Cabaldon applauds $600 million in new funding for homelessness in budget deal
Sacramento--The final budget deal between the Legislature and governor will include $600 million for the state’s two main programs to reduce unsheltered homelessness – a major victory for Sen. Christopher Cabaldon, D-Yolo, and other lawmakers who represent cities and counties relying on this funding to get people off the street.
The agreement, which depends on full adoption of all the related budget language and associated legislation, will contain $500 million for the seventh round of Homeless Housing, Assistance, and Prevention Grant (HHAP) for the fiscal year beginning in July 2026.
The budget for fiscal 2025-26, which begins July 1, will contain $100 million in additional funding for Encampment Resolution Grants, which have been used by many cities and counties to resolve particular encampments.
Gov. Newsom’s budget proposal included no additional funding for HHAP. The Legislature worked with the Administration to restore funding at about half the level of recent years, with a delay in the allocation for one year. Many jurisdictions have not drawn down all of their HHAP funding and so will be able to get by in the interim.
“This is not the budget any of us wants, but given the difficult cuts we had to make, I’m glad that we protected critical priorities such as HHAP and the Encampment Resolution Grants,” said Sen. Cabaldon. “We are going to need to make these investments for a long time, and I look forward to one day making HHAP an ongoing appropriation rather than renegotiating it every year.”
Cities and counties around the state have used state funding to make progress in getting people into shelter and housing. The county and city of Napa, for instance, has achieved a 26 percent reduction in homelessness since 2023.
“This is the direct result of the partnership the City of Napa has with the County of Napa and the State of California in utilizing available funding resources to create true impacts – moving people from unsheltered homelessness to interim solutions, and then permanent housing with supportive services,” said Deputy City Manager Molly Rattigan.
The City of Napa used HHAP dollars to create a prevention and diversion program that helps with rent payments, deposits and utilities so people on the brink of homelessness can stay housed, or if they have lost their housing they can get re-housed quickly. HHAP dollars in Napa also pay for outreach workers and for services to young people housed in the city’s permanent supportive housing site, Valley Lodge.
Napa is using a $15 million Encampment Resolution Grant awarded in 2023 to house about 60 people in motel rooms and clean up encampments on public land, including Kennedy Park.
“In layering local funding with State funding, we have been able to achieve this reduction and strive to continue to provide housing opportunities to resolve homelessness for more of our community members,” Rattigan said. “The reduction or loss of state funding that we have come to rely on the past six years could have devastating impacts on our ability to continue to achieve reductions in homelessness.”
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Senator Christopher Cabaldon represents the 3rd Senate District which includes the cities of Oakley and Brentwood in Contra Costa County; American Canyon, Calistoga, Napa, Yountville, and St. Helena in Napa County; Benicia, Dixon, Fairfield, Rio Vista, Suisun City, Vacaville, and Vallejo, in Solano County; Cotati, Rohnert Park, and Sonoma in Sonoma County; Davis, West Sacramento, Winters, and Woodland in Yolo County; as well as Isleton in Sacramento County.