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Posted inLocal News

Silicon Valley could face devastating impact if state lawmakers strip homeless funding

by Joyce Chu, San Jose Spotlight June 23, 2025July 1, 2025

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A homeless encampment in San Jose along Coyote Creek. (Joyce Chu/San Jose Spotlight)

THE PROGRESS SAN JOSE and Santa Clara County have made to reduce homelessness could be halted as the state cuts crucial funding for housing and homeless services.

The California Legislature on June 13 passed a $325 billion preliminary budget for the 2025-26 fiscal year, and the state’s main source of homelessness funding — the Homelessness Housing, Assistance and Prevention Program — has been zeroed out. The funding can be used toward homelessness prevention, rental assistance, temporary and permanent housing, outreach, services and shelter improvements. Last-minute budget details are being hashed out before the fiscal year starts on July 1, but the potential axing of the program could have a devastating effect in Santa Clara County and San Jose in coming years.

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Tagged: budget cuts, funding, homeless services, homelessness, Mayor Matt Mahan, San Jose, San Jose Spotlight, Santa Clara County, shelter beds, Silicon Valley, state budget, temporary housing

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