The Brief

California counties are reporting decreases in homelessness, suggesting the state is finally making progress in solving one of its most difficult and persistent problems.

But even as Gov. Gavin Newsom and local officials are celebrating, the money that made those wins possible is at risk of evaporating.

President Donald Trump’s administration this month tried to block organizations that don’t support its social agenda from accessing federal homeless housing funds — causing experts in the field to worry that politically liberal California could find itself blacklisted from crucial dollars.

Cuts to state homelessness funding are also on the horizon, and some local jurisdictions are pulling back funds as they struggle with their own budget deficits. That has counties, nonprofits and industry experts worried California’s homeless counts will soon go right back up.

“I do think that we’re doing something right,” Sharon Rapport, director of California state policy for the Corporation for Supportive Housing, said of the recent decreases. “That all may come to a crashing end with a lot of concerns with what’s happening at the federal level, federal policy changing and funding cuts happening.”

Of the 29 places in California that reported an official homeless census this year, more than half saw a decrease compared to 2024, according to an analysis of point-in-time counts by the Hub for Urban Initiatives. That includes drops of about a quarter in Contra Costa and Sonoma counties, 20% in Santa Cruz County, 16% in Ventura County and 14% in Merced County.

San Diego and Los Angeles counties each saw a decrease of less than 10%. For LA County, this marks the second year in a row that homelessness is down.

But funding worries loom like a black cloud over those promising results. As purse strings tighten, service providers will have to cut staff, programs and bed capacity, meaning they can help fewer homeless people. For years, California cities, counties and nonprofits have been pushing the Newsom administration to provide an ongoing source of homeless funding, so service providers can plan ahead without worrying each year about how much money they’ll get.

Some organizations already are feeling the squeeze.

From December through July, Union Station Homeless Services in Los Angeles County turned away 700 families who needed housing, said CEO Katie Hill.

“We just don’t have anything available for them,” Hill said.

The county cut housing vouchers as the city and county struggled with financial fallout from recent wildfires, falling property tax revenues and increasing legal payouts.

Other organizations are closing their doors for good. Downtown Streets Team, which helps unhoused residents in 16 California cities find housing while earning money cleaning up local streets, plans to close next month after two decades of service.

“The financial and political environment we operate in has shifted dramatically in recent months,” CEO Julie Gardner said in an emailed statement. “During this time, (Downtown Streets Team) lost several significant contracts and grants, creating a multi-million-dollar loss in overall funding. When combined with other factors, including rapidly rising operational costs, these losses made it impossible to continue running the organization in a financially sustainable way.”

‘I just don’t think we’re going to see that funding’

Congress in 2023 appropriated $75 million for something called the Continuum of Care Builds grant, which was supposed to help support the construction of new homeless housing. Former President Joe Biden’s administration started the application process for those grants in 2024. When Trump took the helm in 2025, his administration re-started the process with new criteria, making applicants apply again.

Then, at the start of September, the Trump administration made everyone apply a third time — with a very different set of criteria seeming to disqualify organizations that support trans clients, use “harm reduction” strategies to prevent drug overdose deaths or operate in a “sanctuary city.”

Applicants had to attest that they don’t deny the “sex binary in humans or promote the notion that sex is a chosen or mutable characteristic.” They had to promise not to distribute drug paraphernalia or allow the use of drugs on their property.

Applicants also had to attest that they operate in a city, county or state that cooperates with federal immigration enforcement. Newsom has resisted Trump’s immigration crackdown at a state level, and recently signed a set of bills intended to further check ICE.

And applicants were required to operate in a city, county or state that prohibits public camping and enforces that rule. That one could be an easier lift: Arrests and citations for camping-related activities have soared in some California cities over the past year, after the U.S. Supreme Court gave cities more leeway to crack down, and Newsom encouraged cities to ban camping. But two recent statewide attempts to ban homeless camps from near schools and other areas fell flat.

The new funding rules were a major blow to Contra Costa County-based Hope Solutions, which was initially selected to receive $5.5 million to build 15 tiny homes for homeless 18-24-year-olds in Pittsburg. After staff spent at least 100 hours completing the project proposal, they learned this month that they’d no longer qualify because of the new criteria. The Pittsburg Police Department says it does not participate in immigration enforcement. In addition, the new program rules specify the money must go to buildings that serve elderly residents — an about-face that takes Hope Solutions’ youth project out of the running.

“It felt like a gut punch,” said CEO Deanne Pearn, “and really disheartening to know that we had spent so much time and asked so much of our county partners and others, and that that time could have been spent elsewhere.”

The camp where a person experiencing homelessness lives on a hillside above U.S. Route 50 in Sacramento, on Oct. 25, 2024.

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Fred Greaves

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CalMatters

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Hope Solutions is still moving forward with the project, which Pearn hopes the organization can fund with its own financial reserves. But that means the nonprofit won’t have that money for its next project.

The National Alliance to End Homelessness recently sued the Trump administration over the new grant conditions, claiming that all projects in California and three dozen other states would be ineligible for funds. Earlier this month, a federal judge sided with the Alliance, and temporarily barred the federal government from distributing those funds.

Now, that $75 million is frozen as the case moves forward.

While the new conditions at issue in the lawsuit apply only to one specific federal homelessness grant, experts worry it’s an ominous sign for California. Service providers expect applications to open this fall for the main source of federal homelessness funding — the Continuum of Care Program — which funneled about $600 million to California counties in 2023.

If that application poses similar requirements, California could be in trouble.

“Personally, I just don’t think we’re going to see that funding,” said Hill, of Union Station Homeless Services in Los Angeles County.

In a separate lawsuit, San Francisco and Santa Clara Counties sued the Trump administration over contracts that prevented recipients of federal homeless funds from using the money to promote “gender ideology,” “elective abortions” and “illegal immigration.” The counties won an early victory last month, when a judge temporarily blocked the administration from imposing those conditions.

Other federal cuts are looming, too. The Emergency Housing Vouchers program, which launched during the COVID-19 pandemic and now helps more than 15,000 Californians pay their rent, is expected to run out of money next year.

That’s not even counting the cuts to housing vouchers and other federal housing and homelessness programs Trump proposed in May, which are still being negotiated in Congress.

California turning a corner on homelessness

California appears to be decreasing its homeless population, according to the Hub for Urban Initiatives, a California organization that helps local communities shape their homelessness policy, apply for grants and survey their homeless populations.

The 29 California communities that counted and reported their homeless populations this year tallied a total of 131,209 people — a 4% decrease from what those same communities reported last year. That’s a significant step for a state where the homeless population has been stubbornly rising for years.

That data comes from the federally mandated homeless point-in-time count, where teams of volunteers count the unhoused people they see on the street on one night in January. The counts are imperfect, as volunteers can overlook people sleeping in out-of-the-way places, and different counties use different methods — while some places count every year, others count every other. Of the 44 “continuums of care” required to count in California (some small, rural communities combine multiple counties into one continuum of care), 14 didn’t count this year.

The federal housing department will release an official total for the state later this year.

Newsom trumpeted the initial decreases, taking credit for pouring money into homeless housing and other services. He’s not wrong.

Contra Costa County, which saw the state’s biggest drop in homelessness this year, attributes its success largely to the recent boost in state funding, said Christy Saxton, director of Health, Housing and Homeless Services for Contra Costa County. Over the past two years, the county increased its homeless shelter and housing capacity by more than a third.

A big piece of that was the Homeless Housing, Assistance and Prevention program, which Newsom launched in the 2019-20 budget year to fill what until then had been a void of state homelessness funds. For the past few years, that program gave cities and counties $1 billion each year.

Those funds support programs such as Contra Costa County’s Delta Landing temporary housing site in Pittsburg, which opened 172 units in 2021. Until then, that part of the county had about 20 beds for its unhoused residents, Saxton said.

But instead of making that state funding ongoing, Newsom’s administration opted to dole it out in one-time grants each year, leaving cities and counties continually guessing what next year’s budget will bring.

This year, that state program will get no new funding (because of the glacial pace at which the state distributes these funds, cities and counties have yet to receive money from the last round). Next year, the amount is set to shrink to $500 million.

“We are significantly concerned about the cuts that are coming,” Saxton said, “because it has taken an influx of money in order to see those decreases, and we need that to continue on now more than ever.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

Los Angeles County District Attorney Nathan Hochman promised at a Tuesday night town hall that MacArthur Park will see “amazing progress” in public safety before the 2028 Olympic Games.

Several community members told LAist they have seen crime return to the Los Angeles park after months of joint drug enforcement operations by the Los Angeles Police Department and federal agencies. Those efforts led to dozens of arrests for alleged drug sales in the area.

An LAPD captain attending the town hall confirmed to LAist that the department is aware of renewed safety problems.

Hochman acknowledged those concerns and said the recent operations made progress and created an opportunity for lasting change.

“If we keep this focus and the energy on this area, MacArthur Park, Skid Row and everything in between,” Hochman said, “then we will see amazing progress before the Olympics, and that is actually a promise.”

Hochman previously promised, during a drug enforcement operation on June 4, to have a picnic at the park on Labor Day. Hochman told attendees he kept that promise when he held an event at the park on Sept. 5 with other local and federal law enforcement officials.

As district attorney, Hochman works with law enforcement agencies to prosecute criminal cases in L.A. County. He said that it will take more work from policymakers and community members to remove the open-air drug market that has been entrenched there for decades.

The area is represented by L.A. City Councilmember Eunisses Hernandez, County Supervisor Hilda Solis, state Assemblymember Mark González and state Sen. María Elena Durazo. Staff members from some of those offices, and the mayor’s office, sat in on the town hall organized by the local nonprofit California Rising.

“Feel free to put the fire under the feet of our politicians,” Hochman told about two dozen residents who attended. “All too often it is easy to spend some effort on something and then get distracted and spend some effort somewhere else.”

'Temporary' relief

Some residents and business owners agreed with Hochman that the large-scale drug enforcement operations from March through June made the area feel safer, at least for a while.

“It was temporary, but we got to see, actually, families at the bus stops with their kids — before it wasn't like that,” Elaine Alaniz told LAist Tuesday. “I think it does help us, but on the other hand I still think that we need more help. It's not just a one, two, three-day thing.”

Alaniz lives nearby and is the president of the Westlake North Neighborhood Council, which begins a block northeast of MacArthur Park.

She said she has seen some crime move away from the park and into the surrounding neighborhoods.

Capt. Ben Fernandes, who leads LAPD’s Rampart Division, said the earlier operations were successful, but there have been some setbacks.

“We made a lot of headway in the beginning,” he said. “There are some issues that we've had some repopulation, especially with addicts.”

Fernandes said that the department will continue to arrest people suspected of selling drugs near the park, while connecting people who are addicted with services to help them get sober and off the streets.

A call for community involvement

Hochman and Fernandes each emphasized that making MacArthur Park a safe and welcoming place can’t be done by law enforcement alone.

“My advice: take the park back — it's your park,” Hochman said at the town hall, calling for community organizations to plan regular outings there. “That starts to send a message that the community really cares about this park.”

He asked that performers like Justin Bieber, who played an impromptu set in the park last month, have more events there as well.

Fernandes said people can get involved to change perceptions about MacArthur Park so it's no longer thought of as a place to go to score drugs.

“What we need to do is — we as a community — come together and show [people using drugs] that it's not their place to go,” he said. “That you're going to be there with your children, with your parishioners, with your friends, with your family.”

Inglewood city officials are launching an audit of their financial relationship with SoFi Stadium and claiming the stadium could owe years of ticket taxes, one month after a judge voided the 2015 contract that brought the stadium to Inglewood. 

The Inglewood City Council voted unanimously Tuesday to commission the audit. Mayor James Butts said the move is a necessary next step after the court ruling, which threw the terms of the financial relationship between the city and Hollywood Park stadium development into question. 

Millions of dollars are at stake for both the city and the stadium businesses. City officials say that the ruling means a cap that limited the amount of admissions tax that Inglewood could collect no longer applies. They also plan to investigate the authenticity of $376 million worth of infrastructure bills Hollywood Park claims the city owes. The findings of the audit could also factor into discussions of how the city will address its current $30.8 million deficit.

The City Council motion — put forward by Butts and co-sponsored by Councilmember Dionne Faulk — requires the city attorney to retain an accounting firm to conduct the audit and report back to the public on its findings within 30 days. It set aside $325,000 from the city’s General Fund to pay for the audit. You can read the city’s full explanation of the audit here.

Butts, who was at the city’s helm a decade ago when developer Stan Kroenke brought his Hollywood Park pitch to Inglewood, said city officials built what they thought was a partnership with their stadium counterparts.

But that partnership has crumbled. Since last summer, the city and stadiums have been slugging it out in a complex series of court cases over the stadium’s contract and Inglewood’s network of video billboards. The conflict has spilled over into the Nov. 3 election via ballot measures that would change the city’s commercial advertising and ticket tax rules. 

The audit approved by the City Council on Tuesday will dig into the entire financial relationship between the stadium and city since 2015, unpacking what is owed and what was received from taxes on everything from tickets to parking. City officials plan to continue auditing the taxes on a quarterly basis into the future.

Still, it’s not guaranteed the city would be able to force the stadium development to pay any debt the audit does claim. Hollywood Park could still appeal the court ruling that voided its contract with Inglewood, while Butts said the city wants to negotiate a new contract to replace it. 

A Hollywood Park spokesperson said the stadium development has lived up to its financial obligations, including paying all of its taxes.

“This is yet another thinly veiled attempt to distract from scrutiny surrounding the City’s own fiscal mismanagement and the questionable actions of its Mayor,” the spokesperson wrote in a statement.

Some locals at Tuesday’s meeting said during public comments they were baffled why the city hadn’t set up an audit process earlier.

“We have needed an audit from day one. We can’t sit here and claim we didn’t know or have an inkling what we were doing with Hollywood Park,” Diane Sambrano said. 

Exterior of Sofi Stadium in Inglewood

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Gary Coronado

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The LA Local

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Speaking during the meeting, Butts said the audit was triggered because of the void left by the development agreement and because major events including the 2027 Super Bowl and 2028 Olympics are about to hit Inglewood.

The mayor first claimed the development agreement was illegal in a letter written directly to Stan Kroenke last year, saying the city’s lawyers made the determination while researching billboard litigation.

Millions in tax revenue at stake

After the judge ruled in agreement with the city, Butts told The LA Local that city officials were still researching the specific implications of the court’s ruling. In Tuesday’s council motion, city staff highlighted what they say is one major change they’ve discovered: There’s no longer a limit on how much admissions tax the city can collect.  

Inglewood collects a 10% tax on tickets sold at SoFi Stadium, but the 2015 initiative that brought the stadium to the city put a cap on that revenue, starting at $15 million a year and increasing annually with inflation. 

The admissions tax cap also happens to be the subject of the current ballot Measure AT. WOW Media, the billboard operator allied with the city in its dispute with the stadium, is funding a campaign in favor of the initiative.

Admissions tax has been a sizable revenue stream for the city — bringing in an average $20 million a year since SoFi Stadium opened — but city officials have said it could be significantly bigger. A city analysis of Measure AT estimated that getting rid of the cap could bring in as much as an extra $50 million in future years. The city did not estimate how much admissions tax revenue it has missed out on while the development agreement was in effect.

The Inglewood audit seeks to clarify basic questions about how taxes are assessed on ticket sales and whether those taxes are actually forwarded to the city. Officials say it will provide transparency about ticket sales, pricing and fees, which have been heavily scrutinized in recent years across the state. 

Gray gets support on proposal for future billboard revenue audit

Councilmember Gloria Gray attempted to amend the audit motion Tuesday, asking the city manager to also audit the revenue the city gets from billboard fees.

“I believe the same standard of financial transparency should apply to every city agreement,” Gray said.

Though her motion didn’t receive a second, Councilmember Eloy Morales said he’d support putting a billboard revenue audit on the council’s agenda in the future. 

“I think we all support all those audits,” Morales said. 

Gray’s move was a rarity for a council that seldom debates motions during public meetings and almost always votes unanimously. The councilmember is currently running for mayor against Butts.

Inglewood pulls in as much as $8 million a year from billboards, according to budget records. Much of that comes from a series of deals the city cut with WOW Media, allowing the billboard company to construct and operate the billboards on public medians and sidewalks. In return, WOW gives the city a cut of ad revenue along with other concessions.

The post Inglewood is investigating if SoFi Stadium owes years’ worth of ticket taxes appeared first on LA Local.