Saratoga, California — California will steer $900 million back into its centerpiece homelessness grant program under a budget agreement that reverses Governor Gavin Newsom's earlier stance against new spending on the initiative.
The 2026-27 budget deal between Newsom and top Democratic lawmakers restores funding for the Homeless Housing, Assistance and Prevention program, known as HHAP, which Newsom created in 2019 as the state's principal vehicle for funding shelters, services, and permanent housing.
Saratoga, located in the San Francisco Bay Area, is among the communities that stand to benefit from the restored HHAP funding. Bay Area local governments have been allocated roughly $754 million through the program, according to the reporting.
The agreement requires cities and counties to meet stricter reporting requirements and contribute more local money to qualify, a compromise that lets lawmakers claim a larger investment than the governor had proposed while accepting new accountability measures. State Senator Dave Cortese, a South Bay Democrat, said the funding fight was one his caucus was unwilling to abandon.
A spokesperson for Newsom said the arrangement reflects the governor's longstanding commitment to addressing homelessness. The money is contained in a trailer bill expected to pass the legislature this week.
Since HHAP launched, the program has awarded more than $4 billion in grants, according to state data, and more than 110,000 people have been placed in permanent housing since January 2023. Federal figures show California's homeless population fell 3 percent in 2025, the first decline since 2018.