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California Governor Gavin Newsom unveiled details of his multibillion-dollar initiative to address the homelessness crisis in the state and is urging cities and counties to take “immediate action.”
On Monday, Newsom provided a model ordinance for cities and counties to “immediately tackle dangerous and unhealthy encampments and connect individuals experiencing homelessness with shelter and services.”
“There’s nothing compassionate about letting people die on the streets,” Newsom said in a news release.

A homeless encampment is seen on the sidewalk of Hollywood Boulevard in Los Angeles on May 9, 2024. (Toby Canham for Fox News Digital)
Newsom had urged the Supreme Court to review the case, asserting that court rulings restricting the government’s ability to penalize vagrants occupying public areas have created an “insurmountable roadblock” to resolving 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 stepheny.price@fox.com