In summary
State and local governments became more aggressive in sweeping homeless encampments in 2025, among other measures.
In 2025, we started to see the effects of a more punitive approach to homelessness from the state and local governments.
A CalMatters investigation found that the number of people arrested or cited for homelessness-related offenses soared in cities around the state. At least 50 California cities passed new ordinances targeting homeless encampments, according to an analysis by UC Berkeley Law students. That all came after the U.S. Supreme Court’s decision last year in Grants Pass v. Johnson, which gave cities more freedom to punish people for sleeping in public spaces.
Gov. Gavin Newsom doubled down in encouraging cities to crack down on people living outdoors. In May, he urged every local government in the state to adopt ordinances that restrict public camping. In August, he launched a new state taskforce dedicated to clearing encampments.
2025 was also the year that some California counties finally started to make progress on homelessness, which experts attributed to an influx over the past few years in state, federal and local funds for housing and services. Of the 29 places in California that reported an official homeless census, more than half saw fewer unhoused people compared to 2024, according to an analysis of point-in-time counts by the Hub for Urban Initiatives. Contra Costa, Sonoma, Santa Cruz, Ventura, San Diego and Los Angeles were among the counties that saw their numbers go down.
2026 outlook
Cuts, cuts and more cuts. Proposed federal cuts to housing and homelessness funds, as well as a shift in federal funding away from permanent housing, could derail the progress California has made in fighting homelessness. The state also is reducing the money it contributes to homeless housing and services.
At the same time, the federal administration is signalling that it will divert funds away from states, cities and organizations that support undocumented immigrants, diversity and inclusion efforts and the transgender community. Some California homeless service providers worry that could put them at risk of losing federal dollars.