CSAC Statement on 2026 State of the State Address

Sacramento, CA —California State Association of Counties (CSAC) CEO Graham Knaus issued the following statement after Gov. Newsom delivered his 2026 State of the State address Thursday to a joint session of the California Legislature:

“Let’s be clear: Playing a shell game with existing funds is no substitute for the most successful program addressing homelessness at the local level. The governor rightly praises counties and cities for reducing homelessness. So why on earth would the state abdicate its responsibility and allow homelessness to soar again?”

Background/Context:

Historical HHAP funding:

• 2019-20: $650 million
• 2020-21: $300 million
• 2021-22: $1 billion
• 2022-23: $1 billion
• 2023-24: $1 billion
• 2024-25: $1 billion
  • None of this money has been distributed yet, 18 months after it was approved.
• 2025-26: $0
• 2026-27: $500 million
  • Contained in the governor and Legislature’s FY26 budget deal, but does not bind future budgets

Prop 1 funding:

• The Proposition 1 housing intervention funding effective July 1 that the governor referenced in his State of the State is not new money.
• It’s existing funding that’s being taken away from county behavioral health services and prevention.
• This funding simply does not backfill for the successful HHAP program. They’re used for different purposes.

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