California Gov. Gavin Newsom released details about his multibillion-dollar plan to tackle the homeless crisis in the Golden State and is pushing cities and counties to take “immediate action.”
On Monday, Newsom shared a model ordinance for cities and counties to “immediately address dangerous and unhealthy encampments and connect people experiencing homelessness with shelter and services.”
“There’s nothing compassionate about letting people die on the streets,” Newsom said in a news release.
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“Local leaders asked for resources – we delivered the largest state investment in history. They asked for legal clarity – the courts delivered. Now, we’re giving them a model they can put to work immediately, with urgency and with humanity, to resolve encampments and connect people to shelter, housing, and care. The time for inaction is over. There are no more excuses,” California Gov. Gavin Newsom said.
The ordinance is backed in part by $3.3 billion in new Prop 1 funding, Newsom’s office announced, adding that the governor is “calling on all local governments to act without delay.”
Newsom is also encouraging local leaders to use their authority, affirmed by the U.S. Supreme Court, to address encampments.
“The Governor is calling on every local government to adopt and implement local policies without delay,” Newsom’s office said.
Newsom’s office said this model ordinance draws from the state’s “proven and workable approach,” an approach that between July 2021 and May 2025 cleared more than 16,000 encampments and more than 311,873 cubic yards of debris from sites along the state right-of-way.
“These results demonstrate that the policy is both effective and scalable, offering a sound, adoptable framework for jurisdictions to resolve encampments with urgency and dignity,” Newsom said.
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Monday’s announcement is in addition to the release of $3.3 billion in voter-approved Proposition 1 funding, which Newsom’s office said will be made available later today to communities statewide.
Those funds are being used to expand behavioral health housing and treatment options for the “most seriously ill and homeless in California.”
“This model ordinance is not intended to be comprehensive or to impose a one-size-fits-all approach for every city. Tailoring is expected and appropriate to account for local differences and priorities,” Newsom’s office said.
The guidance doesn’t say whether criminal penalties should be enforced but instead would leave it up to cities to enforce how severely those who violate the ban should be punished.
Newsom’s office said all local approaches should reflect three basic principles, which include:
- No person should face criminal punishment for sleeping outside when they have nowhere else to go.
- Encampment policies must prioritize shelter and services and ensure that people experiencing homelessness and their belongings are treated with respect.
- Policies must not unduly limit local authorities to clear encampments, meaning officials must be able to enforce “commonsense policies” to protect the health and safety of their residents and maintain their public spaces.
Newsom’s announcement comes following the Supreme Court’s decision in Grants Pass v. Johnson in 2024, which found laws restricting sleeping in public areas did not violate the constitutional restriction against “cruel and unusual punishment.”
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Newsom had encouraged the Supreme Court to take up the case, claiming court decisions preventing the government from punishing vagrants occupying public spaces had created an “unsurmountable roadblock” to addressing the crisis.
Newsom’s office told Fox News Digital that the governor has “actively held communities accountable who do not follow state law to address homelessness”, sharing an example of when the state sued the City of Norwalk in 2024 for “its unlawful ban on homeless shelters.”
The governor’s office added that while the nation’s unsheltered homelessness last year went up by nearly 7%, California’s increase was only 0.45% and was lower than 44 other states.
“Governor Newsom is the first governor to actively address this issue in our state, and he is reversing a crisis that was decades in the making,” Newsom’s office said.
In addition to cleaning up homeless encampments, Newsom’s office also announced $3.3 billion in grant funding to create over 5,000 residential treatment beds and more than 21,800 outpatient treatment slots for behavioral healthcare services.
“Californians demanded swift action to address our state’s behavioral health crisis when they voted for Prop 1 in March 2024,” Newsom’s office said.
“Today, we’re delivering our biggest win yet. These launch-ready projects will build and expand residential beds and treatment slots for those who need help. Whether it’s crisis stabilization, inpatient services, or long-term treatment, we’re ensuring that individuals can access the right care at the right time,” the statement continued.
When fully awarded, Newsom’s office said funding from Proposition 1 bonds is estimated to create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health and will build on other major behavioral health initiatives in California.
“Today marks a critical milestone in our commitment to transforming California’s behavioral health system,” said Kim Johnson, secretary of the California Health and Human Services Agency. “Through these awards, we are investing in bold, community-driven solutions that expand access to care, promote equity, and meet people where they are. These projects are a reflection of our values and vision for a healthier, more compassionate California.”
Newsom’s office also said the Department of Housing and Community Development will oversee up to $2 billion in Proposition 1 funds to build permanent supportive housing for veterans and others who are homeless or at risk of homelessness and have mental health or substance-use disorder challenges.
“This is a generational investment in California’s behavioral health future. We are not just building facilities. We are building hope, dignity, and pathways to healing for thousands of Californians,” said Michelle Baass, director of the state Department of Health Care Services, in a statement.
Stepheny Price is a writer for Fox News Digital and Fox Business. She covers topics including missing persons, homicides, national crime cases, illegal immigration, and more. Story tips and ideas can be sent to [email protected]
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