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Homelessness Rises as State Funding Cuts Threaten Bay Area Shelters

The Legislature’s decision to zero out the Homelessness Housing, Assistance and Prevention Program puts local providers on track to lose 550 beds in San Jose next year

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Overview

  • Santa Clara County’s 2025 Point-in-Time count tallied 10,711 unhoused residents, an 8.2% rise from 2023 despite directing $446 million into homelessness interventions.
  • Organizations moved over 8,000 people into housing between 2023 and 2025, yet for every person housed nearly two entered homelessness due to systemic factors like scarce affordable housing.
  • Sonoma County recorded a 23% decrease in homelessness to 1,952 people—its lowest since 2007—but saw family homelessness jump 37% and chronic cases rise 20%.
  • San Jose officials warn that eliminating California’s Homelessness Housing, Assistance and Prevention Program will cost the city about 550 temporary housing beds and $30 million in services.
  • The preliminary state budget outlines a partial restoration of homelessness funding of about $500 million for fiscal year 2026-27, half the level allocated this year.