Governor Newsom allocated $50 million to Santa Clara County for homelessness programs — the largest share from $145 million distributed among eight California regions. Half the funding will go directly to San Jose. County officials said they will use the money for temporary housing, prevention services and case management.
The state has invested $234 million in Santa Clara County and San Jose homelessness programs since 2019. The county launched dozens of initiatives during that period, from prevention payments to mobile outreach teams working with people experiencing homelessness on the streets. But recent data shows more than 10,000 people still live unsheltered in the county — a figure that has barely moved.
San Jose shows different results. Mayor Matt Mahan shifted city spending in 2023 from long-term housing construction to rapid solutions — modular homes, converted motels and safe parking programs. The approach reflects a simple calculation: permanent housing takes five years or more to build, while people experiencing homelessness face immediate dangers on the street. The number of unsheltered people in the city dropped from 5,100 to fewer than 4,000 over six years — a 23% decline.
The strategy produces results but sparks controversy. San Jose’s city council approved authority to arrest people experiencing homelessness who refuse shelter offers three times. Critics, including the organization Destination: Home, argue arrests undermine trust and discourage people from seeking help. Activist Gail Osmer, who has worked with people experiencing homelessness in South Bay for years, calls for concrete outcomes rather than more programs — specifically another tiny homes complex with 200 to 300 units.
Mahan entered California’s gubernatorial race in January. The primary is June 2. Clearing encampments forms the centerpiece of his campaign. He criticizes the state for spending billions on programs without measurable reductions in homelessness numbers. Newsom leaves office at year’s end. He distributed more than $724 million through the Homeless Housing, Assistance and Prevention program over the past two months — six funding rounds across 31 regions. The governor’s administration cites results: 100,000 people moved from homelessness to permanent housing since 2019. Santa Clara County received the largest allocation from the latest round — the same county where Mahan built his political career.
For South Bay residents, politics provides background noise. The math does not. The $50 million for 10,000 people experiencing homelessness equals $5,000 per person. The average studio apartment in San Jose rents for $2,400 monthly.
Two months. Then back to the streets.