Overview

• The California Legislature’s preliminary 2025-26 budget eliminated funding for the Homelessness Housing, Assistance and Prevention Program, cutting off $760 million in grants for prevention, rental assistance and shelter improvements.
• Santa Clara County’s Point-in-Time count recorded 10,711 homeless residents in January 2025, marking an 8.2% increase since 2023 despite housing over 8,000 people in that period.
• San Jose officials say the loss of state grants will lead to the closure of about 550 beds and spaces in temporary housing projects starting in fiscal 2026-27.
• The city and county plan to add more than 1,000 new shelter beds this year through motel conversions, modular units and other interim housing initiatives funded before the cuts.
• Leaders are bracing for up to $70 million in proposed federal cuts to Medi-Cal and housing vouchers, which could further reduce assistance for low-income and homeless residents.