Newsom Bullies Local Leaders on Homeless Policy, Demands Federal Funds

California Governor Gavin Newsom is threatening to withhold state funds from cities that do not comply with his homeless policies, even as he demands $40 billion in federal aid to help recover from the deadly Los Angeles fires.

The governor’s approach has drawn criticism for applying different standards to state and federal funding, as he argues that it would be wrong for the Trump administration to place conditions on the aid California receives.

Newsom’s request for federal assistance comes despite his administration’s ongoing legal battles with the Trump administration, including spending $50 million to fight Trump over immigration and other policy disputes.

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California officials have pushed back against the idea that federal disaster relief should come with oversight, such as the suggestion from Ambassador Ric Grenell that aid should be managed by a Special Master to ensure proper spending.

The governor has insisted that the federal government should not “politicize” fire relief and has sought to demonstrate California’s ability to manage its own resources.

On Monday, he announced the launch of a new website aimed at tracking the state’s homeless spending to increase accountability.

However, Newsom has taken a different approach when it comes to aid that California distributes to local governments.

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He has repeatedly warned that cities failing to meet his administration’s benchmarks on homelessness—such as clearing encampments and approving more housing projects—could be denied access to hundreds of millions of dollars in state grants.

According to the San Jose Mercury News, Newsom reiterated his position during a virtual news conference on Monday, saying that local governments that do not meet progress benchmarks on homelessness will be at risk of losing state funding.

“Gov. Gavin Newsom is again threatening to withhold state money to address homelessness from local governments that are failing to make progress in moving people off the street,” the outlet reported.

Newsom’s administration has issued similar threats in the past.

Last summer, he signed an executive order directing state agencies to work with local governments to speed up encampment removals and relocate homeless individuals to shelters.

Today Gavin Newsom will roll out a new homeless funding accountability tool. Which is like OJ searching for Ron and Nicole’s murderer…

Gavin Newsom 2023: Here is my new $15 BILLION plan to solve homelessness, with Accountability at the core

Audit: Hey, there is $24 BILLION… pic.twitter.com/MLEeb3Pfpu

— Kevin Dalton (@TheKevinDalton) February 24, 2025

Beyond homelessness, Newsom has also pressured local governments on other issues, including housing development.

Cities like Huntington Beach have pushed back against his directives to allow more “affordable” housing projects, arguing that such policies could negatively impact their communities and property values.

In 2023, the governor signed a bill cutting funding to school districts that refused to adopt the state’s curriculum on controversial topics related to sexuality and gender identity.

Despite concerns that reducing funding could harm students, Newsom defended the measure as a way to enforce compliance with state policies.

As the governor continues to enforce conditions on state funds while resisting similar oversight on federal aid, his approach has drawn scrutiny.

Whether California will receive the full $40 billion in federal assistance remains uncertain, especially as concerns grow over how the state manages its resources.

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