
A reported abrupt change in the federal government’s approach to funding homelessness has the potential to send thousands of Californians back on the streets — leaving homeless service providers scrambling to find a solution, writes CalMatters’ Marisa Kendall.
Compared to the short-term benefits of temporary housing or shelter, the U.S. Department of Housing and Urban Development for years has prioritized permanent housing as a way to end someone’s homelessness.
But under President Donald Trump, the department plans to severely slash the portion of funds available for permanent housing — from the current rate of 87% down to only 30%, or $3.3 billion to $1.1 billion — and redirect money to temporary housing, reports Politico.
California is home to more than 187,000 unhoused people. Though homelessness rates are dipping in some counties according to the latest point-in-time count, that success is expected to be short-lived in the face of looming state budget cuts and policy changes, such as this latest move, from the federal administration.
The potential shift means California stands to lose hundreds of millions of dollars for permanent housing. If that happens, thousands of residents are likely to be kicked out of their subsidized housing. Service providers are now looking for ways to shore up funds, either by shifting state money or winding down services and helping fewer people.
Los Angeles County, for example, has the largest homeless population in California. At stake are more than 8,000 housing units and $217 million — with more than 80% of that going towards keeping people in permanent housing.
Maryn Pitt, chairperson of the Stanislaus County Continuum of Care, says the cuts would put funds at risk for 17 permanent housing projects.
- Pitt: “I don’t know what they think is going to happen with all these people. We’re just going to turn them out and they’ll just disappear? I have no idea, but it seems rather inhumane.”
🗓️ CalMatters Events in your community
- Stockton: Hear from some of the candidates running for governor at the California Economic Summit’s Governor Candidate Forum on Oct. 23. CalMatters, California Forward and 21st Century Alliance are co-hosting the discussion. Register.
Other Stories You Should Know
Innovative process or danger to local community?

California’s struggle to balance its waste management and enforcing environmental laws came to the fore last month after a Sonoma County startup that claims to provide a novel way to get rid of plastic waste said it was taking its operations elsewhere, reports CalMatters’ Alejandra Reyes-Velarde.
Resynergi, a plastics recycling company, approached Rohnert Park city officials in 2023 for permits to expand its operations and set up shop for developing an alternative recycling process known as pyrolysis. The process involves microwaving old bits of plastic until they turn into an oil and then chemically transforming that into new plastic.
The city ultimately granted Resynergi an administrative use permit. But because pyrolysis is classified in California as a type of incineration — which is associated with toxic and hazardous waste — pyrolysis facilities must also secure permits from counties and regional air quality regulators.
As Resynergi drew more scrutiny from county officials, locals also protested against the potential toxins emitted in the air from Resynergi’s facility.
Company founder Brian Bauer doesn’t consider pyrolysis incineration, and penned an open letter to the city saying it had the “chance to lead by example” in the search for “credible solutions to plastic waste.”
Nevertheless, regional air district regulators issued three violation notices to Resynergi in August for constructing and operating without a permit. A month later, Bauer said the company would move out of California by the end of the year, citing that other states had “the overall culture of accepting what we’re doing.”
Solar panel drama

As state lawmakers propose to expand solar power, one solar energy advocacy group is accusing California’s two largest utility companies of dragging their feet when it comes to hooking up solar panels to the electric grid, writes CalMatters’ Malena Carollo.
State regulators are currently reviewing a complaint lodged by the California Solar & Storage Association that says that Pacific Gas & Electric and Southern California Edison routinely miss state-mandated deadlines for connecting solar panels and face no punishment. The delays cause panel owners to lose significant amounts of money and slow California’s transition to renewable energy, the solar group alleges.
Utilities, for example, are given 10 business days to acknowledge someone’s request for “interconnection” — a complex process led by utilities to make sure solar arrays are correctly installed. PG&E’s median time to acknowledge a request was 20 days, and the longest it took was 245 days, according to the association.
PG&E and SoCal Edison say they are working with regulators to address the claims. But advocates say that with the way things stand now, there is little incentive for utilities to follow the rules.
And lastly: A new airport terminal

Economic and political turmoil mean that California cities are bracing for a drop in tourism. But executives at San Diego International Airport are hoping its new $3.8 billion terminal can welcome visitors from across and outside the U.S. Read more from CalMatters’ Deborah Brennan.
California Voices
CalMatters columnist Dan Walters: The effect on gas prices after the explosion at Chevron’s El Segundo refinery remains unclear, but it’s a reminder of how tenuous California’s gas supply has become.
Midwifery and doula care are lifesaving health care options that should be accessible to every woman, especially Black women, who are nearly four times more likely to die than others during or after childbirth, writes Erica Moore-Smith, a therapist and licensed clinical social worker in Riverside County.
Other things worth your time:
Some CA health care premiums could double this fall, US Rep. Matsui warns // The Sacramento Bee
CA has a severe nursing shortage. Inside the battle to get more students in schools // Los Angeles Times
CA families, officials call for release of US citizens detained with Gaza aid flotilla // KQED
Conversion therapy heads to the Supreme Court. Conversion ministries never left CA // San Francisco Chronicle
Burbank Airport air traffic control tower unmanned on Monday evening amid government shutdown // ABC 7
Corporations are buying up Altadena lots. Policies to counter that trend have so far failed // LAist
More than 600 join procession for migrants in downtown San Diego // The San Diego Union-Tribune