Jun 10, 2025
California Gov. Gavin Newsom has introduced a model ordinance, calling on state municipalities to ban tent encampments on public property.
“There’s nothing compassionate about letting people die on the streets,” Newsom said in a press release on May 12. “Now, we’re giving [local leaders] a model they can put to work immediately, with urgency and with humanity, to resolve encampments and connect people to shelter, housing and care.”
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Following the model ordinance would make it illegal “to construct, place or maintain on public property any semi-permanent structure.” Furthermore, it would be unlawful to “sit, sleep, lie or camp on any public street, road or bike path, or on any sidewalk in a manner that impedes passage.” Unhoused Californians are also restricted from camping in the same spot on public property for more than three days or nights in a row.
In addition, prior to any enforcement, officials would be required to provide notice and “make every reasonable effort to identify and offer shelter” and “offer supportive services” to persons living in the encampment.
The effort will in part be backed by $3.3 billion in new funding available to communities for housing and treatment options for the most seriously ill and homeless in California.
Homelessness in the Golden State
As the largest state by population, California also has the largest unhoused population. According to data from the U.S. Department of Housing and Urban Development, 187,000 people were estimated to be homeless in California on a single night last year — accounting for nearly one quarter (24%) of the national total. Two-thirds of the state’s homeless were also unsheltered.
On the bright side, the amount of homeless in California only increased 3% between 2023 and 2024, while it grew 18% across the country in the same time period.
Despite the high number of homeless in the state, California remains one of the richest in the U.S. Median household income in the state was an estimated to be $95,521 in 2023, according to U.S. Census Bureau data from the American Community Survey, compared to $77,719 nationwide. But the high cost of living, including real estate and rental prices in major cities, has kept many low-income earners from securing affordable housing in California. The state’s minimum wage is $16.50 per hour, while Zillow reports the average rent price for a one-bedroom unit to be $2,144 per month as of June 8.
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Newsom can’t force municipalities to adopt the new model ordinance, however, some local leaders may be on board. San Francisco Mayor Daniel Lurie previously vowed to clean up city streets, while San Jose Mayor Matt Mahan has proposed arresting homeless people who refuse housing.
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Criticisms of Newsom's plan
Some officials are skeptical of the initiative and have accused the government of exaggerating the state’s funding of programs to tackle homelessness. In the governor’s press release, it’s stated that Newsom had provided communities $27 billion to address the crisis.
“That’s just not true. More than half of it went to housing, not homelessness,” Jeff Griffiths, Inyo County Supervisor and California State Association of Counties President, said in a statement. “How much of that housing has actually been built?”
Jesse Rabinowitz, Campaign and Communications Director for the National Homelessness Law Center, called the approach “backwards” and told The New York Times “we will continue to push for real solutions to homelessness, like housing and services.”
Newsom did not mince words when he placed the responsibility at the feet of local authorities.
“The state has changed, and so too now must the cities and counties,” Newsom said during a press conference. “It is time to take back the streets. It's time to take back the sidewalks. It's time to take these encampments and provide alternatives. And the state is giving you more resources than ever. And it's time, I think, to just end the excuses.”
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
