On Friday, Newsom announced a combined $419 million will go to San Francisco, Los Angeles and San Diego in the sixth round of grants awarded through the Homeless Housing Assistance and Prevention Program. The HHAP program has distributed around $4.5 billion for local homelessness response so far, according to the governor, and additional dollars will be doled out in the next six months.
San Francisco will receive about $39.9 million, which will fund shelters and navigation centers throughout the city. Just prior to the latest round of grants, the state awarded $187 million to San Francisco, according to the HHAP fiscal data dashboard.
Gov. Gavin Newsom speaks during a press conference at the Friendship House Association of American Indians in San Francisco on Jan. 16, 2026. (Beth LaBerge/KQED)
In its last budget negotiations, Lurie spearheaded a controversial effort to reallocate funds that voters approved through Proposition C, a tax on the city’s wealthiest companies to fund homelessness services. The approved budget shifted some dollars that were set aside for permanent supportive housing toward temporary shelter and transitional housing.
But long-term state funding for homeless programs is also unclear. California allocated initial funding for the HHAP program in the 2024-25 fiscal year budget, but no additional funding for that specific program was allocated in the 2025-26 budget.
The proposed 2026-27 budget, which is still under review, includes around $500 million for HHAP, about half of what was originally allocated. Newsom on Friday underscored that the state had very little investment in homelessness response prior to his administration.