SACRAMENTO – While public attention has largely focused on federal overreach in Los Angeles, a critical detail in California’s latest state budget proposal has gone largely unnoticed: the Legislature’s joint budget plan for fiscal year 2025–26 includes no funding for the state’s primary program to address homelessness.
The Homeless Housing, Assistance and Prevention (HHAP) program, which distributes flexible funds to cities, counties, and continuums of care, was not allocated any money in the agreement released by Senate and Assembly leaders. Though budget language includes an intent to fund Round 7 of HHAP with $500 million, that would not occur until 2026–27 — and even then, it remains speculative.
The proposed legislation states:
“It is the intent of the Legislature to appropriate $500,000,000 for a Round 7 of the Homeless Housing Assistance and Prevention (HHAP) program in 2026–27 by formula funding to cities, counties, continuums of care, and tribes, with prompt distribution to eligible recipients.”
Such intent language does not carry the force of law and can easily be revised or abandoned in future budget cycles. The omission of concrete funding for homelessness programs comes at a time when local governments are under continued pressure to address growing unsheltered populations with limited resources.
HHAP funding has been a critical source of support for jurisdictions working to provide shelter, expand outreach, support mental health and addiction services, and build long-term housing solutions. Without a new round of funding in 2025–26, many local governments may face disruptions in service delivery or be forced to reduce program capacity.
Despite this, the budget agreement was announced with language emphasizing protection of vulnerable Californians and ongoing investments in housing and affordability. The Legislature highlighted its efforts to reverse some proposed cuts to social services and health care, while advancing initiatives on wildfire prevention and housing construction. Yet the absence of immediate homelessness funding appears to contradict these stated goals.
The new plan does allocate over $50 million for the Department of Housing and Community Development’s operations, split across code enforcement, financial assistance administration, and policy development. This includes $28.7 million for housing policy work and $2.4 million for the Surplus Land Unit — but no funds are earmarked for direct homelessness interventions.
The lack of funding for HHAP raises concerns for local jurisdictions that rely on consistent support to scale responses and maintain critical programs. In recent rounds, cities and counties across California have used HHAP dollars to fund shelter beds, rental assistance, interim housing, and permanent supportive housing development.
Without new funding this fiscal year, some localities may be forced to cut programs, lay off staff, or cancel planned initiatives. While future allocations remain possible, the lack of stability poses challenges for long-term planning and coordination.
Legislative leaders have emphasized that the budget was crafted in response to economic uncertainty, particularly in light of threats from Washington, D.C., including proposed federal spending cuts and trade disruptions. The final state budget must be passed by June 15.
Whether any adjustments will be made to include near-term funding for HHAP remains to be seen. Advocates are watching closely, warning that the cost of inaction will fall on the most vulnerable Californians — and the cities and counties struggling to serve them.
Considering how much has been wasted, what was it $25 billion, maybe it’s better not to put any money out there so it can’t be stolen or used on programs that only make the problem worse?
From article: “The omission of concrete funding for homelessness programs comes at a time when local governments are under continued pressure to address growing unsheltered populations with limited resources.”
(Buh-bye, already-failing housing elements.)