• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
PoliticsCalifornia

Gavin Newsom barely wins crucial vote, hails ‘biggest change in decades in how California tackles homelessness’

By
Trân Nguyễn
Trân Nguyễn
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Trân Nguyễn
Trân Nguyễn
and
The Associated Press
The Associated Press
Down Arrow Button Icon
March 21, 2024, 10:43 AM ET
Gavin Newsom
California Gov. Gavin Newsom speaks in support of Proposition 1, during a news conference at the Los Angeles General Medical Center in Los Angeles, Wednesday, Jan. 3, 2024. AP Photo/Damian Dovarganes, File

California voters have approved a measure that will impose strict requirements on counties to spend on housing and drug treatment programs to tackle the state’s homelessness crisis, in a tissue-thin win for Gov. Gavin Newsom, who personally campaigned for the measure’s passage.

Recommended Video

Democrats outnumber Republicans by a staggering 2-to-1 in California, and the borderline vote — coming more than two weeks after election day — signaled unease with the state’s homeless policies after Newsom’s administration invested billions of dollars to get people off the street but no dramatic change has been seen in Los Angeles and other large cities.

The state accounts for nearly a third of the homeless population in the United States; roughly 181,000 Californians are in need of housing.

Newsom, who made the measure a signature proposal, spent significant time and money campaigning on its behalf. He raised more than $13 million to promote it with the support of law enforcement, first responders, hospitals and mayors of major cities. Opponents raised just $1,000.

Proposition 1 marks the first update to the state’s mental health system in 20 years.

“This is the biggest change in decades in how California tackles homelessness, and a victory for doing things radically different,” Newsom said in a statement after the borderline vote. “Now, counties and local officials must match the ambition of California voters. This historic reform will only succeed if we all kick into action immediately – state government and local leaders, together.”

Counties will now be required to spend about two-thirds of the money from a voter-approved tax enacted in 2004 on millionaires for mental health services on housing and programs for homeless people with serious mental illnesses or substance abuse problems.

The state, with a current inventory of 5,500 beds, needs some 8,000 more units to treat mental health and addiction issues.

The initiative also allows the state to borrow $6.38 billion to build 4,350 housing units, half of which will be reserved for veterans, and add 6,800 mental health and addiction treatment beds.

Opponents, including social service providers and county officials, said the change will threaten programs that are not solely focused on housing or drug treatment but keep people from becoming homeless in the first place.

Critics said the single formula could mean rural counties such as Butte, with a homeless population of fewer than 1,300 people, would be required to divert the same percentage of funds to housing as urban counties such as San Francisco, which has a homeless population six times bigger.

With makeshift tents lining streets and disrupting businesses in communities across the state, homelessness has become one of the most frustrating issues in California and one sure to dog Newsom should he ever mount a national campaign.

Newsom touted the proposition as the final piece in his plan to reform California’s mental health system. He has already pushed for laws that make it easier to force people with behavioral health issues into treatment.

William Elias, a television producer in Sacramento, said he “was on the fence” about Proposition 1 but decided to vote in favor of it because of the pervasive homelessness problem.

“That’s something that’s all around us right now,” he said. “We got all these tents out here in front of City Hall.”

Estrellita Vivirito, a Palm Springs resident, also voted ‘yes’ on the measure.

“It’s only logical, you know, we have to do something,” she said.

Katherine Wolf, a doctoral student at the University of California, Berkeley, said she voted ‘no’ on the measure out of concerns it would result in more people being locked up against their will.

“I was appalled of the system of laws that he has been building to kind of erode the rights of people with mental disabilities,” Wolf said of Newsom.

Griffin Bovee, a Republican state worker in Sacramento, also voted against the proposition and said the state has been wasting taxpayer money.

“Sacramento really shouldn’t get another dime until they actually figure out why what they’re doing is not working,” he said of the state’s handling of the homelessness crisis. “They spent $20 billion over the past few years trying to fix that problem and it got worse.”

Revenue from the tax on millionaires, now between $2 billion and $3 billion a year, provides about one-third of the state’s total mental health budget.

Opponents, including some county officials, mental health service providers and some Republicans, said the ballot measure would cut funding from cultural centers, peer-support programs and vocational services and would pit those programs against services for homeless people.

Newsom’s administration has already spent at least $22 billion on various programs to address the crisis, including $3.5 billion to convert rundown motels into homeless housing. California is also giving out $2 billion in grants to build more treatment facilities.

___

Associated Press writer Michael R. Blood in Los Angeles contributed to this report.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Trân Nguyễn
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Economy
Elon Musk warns the U.S. is '1,000% going to go bankrupt' unless AI and robotics save the economy from crushing debt
By Jason MaFebruary 7, 2026
2 days ago
placeholder alt text
Economy
Russian officials are warning Putin that a financial crisis could arrive this summer, report says, while his war on Ukraine becomes too big to fail
By Jason MaFebruary 8, 2026
14 hours ago
placeholder alt text
Success
Gen Z Patriots quarterback Drake Maye still drives a 2015 pickup truck even after it broke down on the highway—despite his $37 million contract
By Sasha RogelbergFebruary 7, 2026
2 days ago
placeholder alt text
Commentary
America marks its 250th birthday with a fading dream—the first time that younger generations will make less than their parents
By Mark Robert Rank and The ConversationFebruary 8, 2026
23 hours ago
placeholder alt text
Future of Work
Anthropic cofounder says studying the humanities will be 'more important than ever' and reveals what the AI company looks for when hiring
By Jason MaFebruary 7, 2026
2 days ago
placeholder alt text
Success
Even with $850 billion to his name, Elon Musk admits ‘money can’t buy happiness.’ But billionaire Mark Cuban says it’s not so simple
By Preston ForeFebruary 6, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Politics

US President Donald Trump speaks with reporters before departing from the White House in Washington, DC, on February 6, 2026.
EconomyBonds
China might be beginning to back away from U.S. debt as investors get nervy about over-exposure to American assets
By Eleanor PringleFebruary 9, 2026
3 minutes ago
EconomyBonds
Dow futures rise after index tops 50,000 for the first time while landslide election in Japan sends U.S. bond yields higher
By Jason MaFebruary 8, 2026
11 hours ago
PoliticsOlympics
Trump calls U.S. Olympian a ‘real Loser’ as athletes speak out against administration policies, while Jake Paul tells critics to ‘live somewhere else’
By Fernanda Figueroa and The Associated PressFebruary 8, 2026
13 hours ago
HealthVaccines
Dr. Oz begs Americans to get inoculated against measles as outbreaks spiral around the country. ‘Take the vaccine, please’
By Matt Brown and The Associated PressFebruary 8, 2026
13 hours ago
EconomyUkraine invasion
Russian officials are warning Putin that a financial crisis could arrive this summer, report says, while his war on Ukraine becomes too big to fail
By Jason MaFebruary 8, 2026
14 hours ago
PoliticsJapan
Japanese prime minister’s landslide win gives her party a lower-house supermajority and more room to enact a right-wing agenda
By Mari Yamaguchi, Foster Klug and The Associated PressFebruary 8, 2026
17 hours ago