Gov. Newsom’s Recent $300 Million Block Of Homeless Funding Faces Growing Criticism

Governor Gavin Newsom’s recently announced $300 million block of funding to clear homeless encampments and provide housing for homeless across the state met increasing criticism on Wednesday as more lawmakers and aid groups have continued to speak out against it.

On Monday, Newsom announced a third block of Encampment Resolution Fund (ERF) funding worth $299 million in grants. Applications for funding are to be accepted through June 2024, or until all funds are given out. According to the Governor’s office and Cal ICH, the $299 million will be available to locals as well as Caltrans to remove encampments and assist an estimated 10,000 individuals experiencing homelessness. Half of the new grants will also be prioritized for encampments on the state rights-of-way.

Since 2021 the California Interagency Council on Homelessness (Cal ICH) has continually given out local funding to clear homeless encampments and provide housing through Encampment Resolution Grants. Set up by the passage of AB 140, the two year, $700 million program has also largely focused on encampments on or nearby rights-of-way, which include highways and major public roads.

The last block of funding awarded before Monday was $240 million in December of 2022. Criticism against that funding was immediate, with the Globe noting that, through the programs spending habits, approximately $34,821.43 was spent per homeless person. While homeless encampments have been removed at a rapid pace, local governments have had a difficult time providing permanent shelter or permanent supportive shelter because of restrictive spending or money drying up because of the high cost of removing encampments because of safety concerns along major roadways. Nonetheless, Newsom has continued to call the funding a success because of 5,679 encampments being removed because of the first two blocks of funding, despite homeless going up 9% statewide at the same time.

The newest block of funding saw criticism reach new levels. It began on Monday and Tuesday with many homeless advocate and groups speaking out about how the funding would mostly go towards the elimination of encampments and little left over to house homeless people. Lawmakers then stepped in with their own statements, charging Newsom with gaslighting residents and simply only pushing the thousands of encampments from one area to another.

Growing Criticism

“The governor didn’t clear these homeless encampments; they just moved them down the street,” said Senator Brian Dahle (R-Bieber). “California spends more tax dollars per homeless person than we do on our students. The homeless crisis is a national embarrassment. This governor needs to focus on real results instead of chasing presidential aspirations and gas-lighting Californians.”

Assemblyman James Gallagher (R-Yuba City) added on X: “Throwing more good money after bad. Might as well light it on fire. How about a regional shelter/services approach? State/local partnership. Locals contribute money or in kind services like mental health, drug treatment. And everyone is allowed to enforce on encampments.”

Throwing more good money after bad. Might as well light it on fire 🔥

How about a regional shelter/services approach? State/local partnership. Locals contribute money or in kind services like mental health, drug treatment. And everyone is allowed to enforce on encampments. https://t.co/tU8yRFL5Gb

— James Gallagher (@J_GallagherAD3) November 28, 2023

In addition to the growing lawmaker response, other homeless advocates and services told the Globe on Wednesday that the new funding would only continue to worsen the homeless issue because of it’s misplaced focus.

“What the funding does is remove an encampment, offer shelter or housing space to those people displaced, then only hang on to them for so long before they get fed up and go back to encampments in nearby areas to the last one, then start the cycle again. We need a long term treatment plan, not a band aid,” said Jamirah Scott, a homeless counselor in Oakland, to the Globe. “I don’t find myself agreeing with Republicans too often. In fact, a lot of my colleagues don’t either. But on this, yeah, the funding has serious problems.”

“You talked to the homeless services guy from LA yesterday, and I and many of my colleagues agree with him. It is good to not have tents and encampments so close to dangerous areas. But there has to be a decent system of housing afterwards. As well as health and mental health checks and  job placement.”

“We need a system to reflect that and we just don’t. Encampments being torn down and cleaned up, that is immediate and people like Newsom can say that they did that. But bring back homeless people from living on the street to being back in a home with a job takes time. It’s more of a long-term project, and one that wouldn’t have results and the right amount of data to show it as being successful until at least a few years down the line. Politicians just don’t want to wait that long.”

“Both Democrats and, don’t like to admit it, but Republicans too have some really good ideas. But they take time to get results. Clearing encampments is the easiest solution, is the quickest solutions, and you can claim that they all went to housing even though most will be back out on the street soon enough.”

Applications for the newest block of funding are currently being accepted by the California Interagency Council on Homelessness (Cal ICH).