On May 14, 2025, Governor Newsom presented his revised State Budget at a press conference, and shared this budget summary.
Susannah Parsons, All Home’s Director of Policy and Legislation, released this statement:
“Housing affordability and homelessness remain urgent daily concerns for Californians, so it’s shocking to see the Governor’s May Revise budget eliminate vital funding that local governments and affordable housing developers rely on to deliver solutions. At the same time, his announcement touts promising legislative proposals that would streamline production—but those bills won’t help much alongside such deep funding cuts.
“Especially as the federal government attacks the most vulnerable members of our communities and retreats from housing solutions, California should be doubling down in support, not abandoning ship. We know that California faces a budget deficit, but state leaders could choose to dig deep and lead boldly in this critical moment. Today’s budget also proposes gutting MediCal, which will harm Californians with the lowest incomes, at a time when Republicans in Congress are looking to do the same thing.
“The high cost of housing in our state is driving our affordability crisis, as well as homelessness, and we need the State to at least sustain its investments in the solutions we know work.
- Eliminating the Homeless Housing, Assistance, and Prevention Program (HHAP) could dismantle our homelessness response system, which helps thousands of people stay housed and move in off the streets every month.
- Cutting the Low Income Housing Tax Credit Program could freeze progress on the nearly 45,000 shovel-ready affordable homes in the pipeline.
- Zeroing out the Multifamily Housing Program (MHP) adds insult to injury at a time when state resources for affordable housing have been fully expended.
“Investments the Governor and Legislature have made in recent years are just beginning to bear fruit: California held the state’s increase in homelessness to just 3% last year, far below the 18% increase seen in the nation overall, and saw reductions in the number of veterans and youth experiencing homelessness. We’re encouraged that the May Revision signals support for a statewide housing bond, but even if it passes in 2026—something we’ll work hard to make happen—recent progress will be lost if these cuts stand.
“Housing and homelessness are long-term problems that require long-term, stable investment at levels greater than we have yet seen, to yield significant results. Off-again on-again funding swings are part of the problem, and make solutions much harder to deliver.”
