California Gov. Gavin Newsom announced Thursday that the state will withhold more than $1 billion in funds that were supposed to go toward combating homelessness, calling plans put forth by local leaders “simply unacceptable.” “Californians demand accountability and results, not settling for the status quo,” Newsom said in a statement. “Everyone needs to do better — cities, counties and the state included.” All 58 counties and the state’s 13 largest cities were to receive some of the $1 billion in funds through the state’s Homeless Housing, Assistance and Prevention (HHAP) grants. Homeless people are seen in the Tenderloin area of ​​San Francisco on October 9, 2022. (Tayfun Coskun/Anadolu Agency via Getty Images) The plans would collectively reduce homelessness statewide by just 2 percent over the next four years, according to Newsom. Some plans projected double-digit increases in local homeless populations. “At this rate, it will take decades to significantly reduce homelessness in California,” Newsom said. USA. THEY ARE IN A HOUSING DEPRESSION. HERE’S WHAT THAT MEANS Leaders of California’s largest cities appeared troubled by Newsom’s funding cuts. Los Angeles Mayor Eric Garcetti said he applauded the governor’s “ambition to use his bully pulpit” to address the crisis, but that efforts could not “get bogged down in more politics and red tape.” “Let me be clear: any additional delay under the Governor’s directive hurts our ability to get Angelenos living on the street into safe and stable housing now,” Garcetti said in a statement. “And that’s surprising, since the City has worked directly with and received positive feedback from state agencies and county partners on the development of our plan.” Homeless people are seen in the Tenderloin area of ​​San Francisco on September 24, 2022. (Tayfun Coskun/Anadolu Agency via Getty Images) Oakland Mayor Libby Schaaf also called Newsom’s move counterproductive. “I share the governor’s urgency to reduce homelessness and am always ready to meet all accountability metrics,” Schaaf told the Marin Independent Journal in a statement. “However, we are confused about how delaying HHAP funds furthers our shared goals.” Before being elected governor, Newsom was mayor of San Francisco, a city that now has more than 7,500 homeless people, according to the latest numbers. PORTLAND’S HOMELESSNESS CRISIS HAS RESIDENTS CHOOSING ELSEWHERE TO LIVE, REALTY BROKER SAYS The state capital of Sacramento is outpacing San Francisco, with more than 9,200 people experiencing homelessness each night this year. California counted more than 173,000 homeless people last year, making it the state with the largest unsheltered population in America, according to the California Homeless Data Integration System. The funding made available through HHAP is part of $15.3 billion that state lawmakers have approved to combat California’s homelessness crisis. California Gov. Gavin Newsom said local leaders need to improve their plans to combat homelessness. (Justin Sullivan/Getty Images) GET THE FOX BUSINESS ON THE GO BY CLICKING HERE Newsom also announced a mid-November meeting with local leaders to reevaluate how the state is fighting homelessness.
The Associated Press contributed to this report.