California Gov. Gavin Newsom announced last week that the state will withhold $1 billion in funding from local governments, saying their strategies to combat homelessness are 'simply unacceptable.'
. By withholding money, Newsom intends to incentivize city and county leaders to pursue more ambitious plans to address housing challenges.Collectively, the proposals outlined by local governments would result in a 2% decrease in homelessness over the next four years.
The $1 billion Newsom is withholding is part of the Homelessness Housing, Assistance and Prevention state grants. The state has deployed two rounds of funding to local governments through the program since fiscal year 2019-2020, totaling $950 million, per the California Business, Consumer Services and Housing Agency."As a state, we are failing to meet the urgency of this moment," Newsom said in a statement.
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