Gov. Gavin Newsom is urging California counties to improve homelessness solutions or risk losing funding.
SACRAMENTO, Calif. — Gov. Gavin Newsom is warning counties across the state that they could lose millions in funding if they fail to address homelessness.
The announcement now puts pressure on local governments to ramp up services and housing tied to California’s CARE Court system.
Newsom on Monday announced $291 million for additional housing and behavioral health resources in parts of the state, saying he is “out of patience” with local jurisdictions that have not invested enough in programs to address homelessness.
The governor made the announcement at the Bay Area Community Services in Hayward, which he described as a model for how local providers can connect unhoused people with treatment and long-term housing. “Localism is determinative,” said Newsom. “I’m happy to redirect every damn penny in these programs to the counties that are getting things done, period, full stop.”
Newsom said the new funding will come from the state’s Community Assistance, Recovery and Empowerment, or CARE Act.
CARE Court, which was implemented in all 58 counties in 2024, allows family members, first responders, medical providers and others to petition a court to help someone with severe mental illness or substance use disorder access treatment such as counseling, medication and housing.
State Health and Human Services Secretary Kim Johnson stressed that CARE Court is meant to strengthen accountability in the behavioral health system, not criminalize people who are mentally ill or unhoused. “CARE is not a criminal penalty,” Johnson said. “It’s not a mass conservatorship program. It’s not a substitute for housing or treatment investment. What it really is is a tool for accountability within the behavioral health system.”
Newsom’s comments about potentially redirecting funds drew criticism from elected officials throughout the state.
The California State Association of Counties said in a statement that “counties are following the law as written.”
Republican State Sen. Roger Niello of Fair Oaks said he was glad to see Gov. Newsom acknowledge more needs to be done on homelessness, but criticized the governor for targeting local jurisdictions. “In his State of the State address, he said ‘no more excuses,’” Niello said. “Well, they are trying to get the job done, and they need the funding to do it.”
Newsom pointed to a separate voter-approved funding stream, Proposition 1, as evidence that the state has already committed significant resources. The 2024 measure authorized more than $6 billion in bonds to expand treatment and housing for people with serious mental health and substance use challenges. Combined with roughly $1 billion a year to support housing operations, Newsom said, the investments should translate into visible progress.
“So enough excuses,” he said. “Let’s see these encampments cleaned up, people off the streets. Let’s see these tax dollars produce the results you deserve.”