Gavin Newsom Pushes Local Governments to Ban Homeless Camps, Unlocks $3.3 Billion in Funds

JB Quinnon
May 12
2 min read

Gavin Newsom urges California cities and counties to ban homeless encampments

Gavin Newsom Pushes Local Governments to Ban Homeless Camps, Unlocks $3.3 Billion in Funds

California Governor Gavin Newsom is ramping up efforts to tackle the state’s persistent homelessness crisis by urging local governments to adopt new ordinances that ban homeless encampments in certain areas. On May 12, 2025, Newsom introduced a model ordinance designed to give cities and counties more authority to clear encampments while also emphasizing the need to connect unhoused individuals with shelter and services.

The proposed ordinance includes several key provisions:

Prohibiting people from camping persistently in one location.
Banning encampments that block sidewalks, schools, transit stops, or other sensitive public areas.
Requiring local authorities to provide prior notice and offer shelter or services before clearing an encampment.

According to the governor’s office, these actions aim to balance public safety concerns with compassion, offering unhoused individuals access to housing, treatment, and other supportive services. Newsom described the model ordinance as a tool for local leaders who have expressed frustration over inconsistent legal interpretations regarding homeless encampment clearances.

This move coincides with the release of $3.3 billion in voter-approved funds, part of a 2024 ballot measure that requires counties to dedicate two-thirds of revenue from the state’s millionaire’s tax (originally passed in 2004) toward housing and treatment services for homeless individuals dealing with serious mental health or substance use disorders.

Despite California’s aggressive spending—nearly $24 billion allocated between 2018 and 2023 toward over 30 homelessness programs—a 2024 state audit concluded that progress has been poorly tracked, leaving the state’s homelessness issue largely unresolved.

California remains at the epicenter of the national homelessness crisis, accounting for nearly one-third of the country’s homeless population. According to federal data, more than 187,000 Californians are currently experiencing homelessness. The crisis continues to be a politically sensitive issue for Newsom, especially as he considers potential national ambitions.

Critics, however, warn that banning encampments without ensuring adequate shelter beds or treatment options could lead to legal challenges and further destabilize vulnerable populations. Newsom’s office emphasized that the model ordinance is designed to be implemented alongside expanded services, rather than as a standalone enforcement tool.

The coming months will reveal whether local governments adopt the governor’s proposed ordinance and how effectively the newly unlocked billions in funding will be used to reverse the tide of California’s deepening homelessness crisis.