Why Sacramento’s homelessness prevention budget is shrinking

Sacramento is preparing for a more than 40% drop in state funding for homelessness programs under the Homeless Housing Assistance and Prevention Program (HHAP 6). The city’s proposed budget dedicates 70% of available funds to interim housing but cuts prevention services by $2 million. The funding loss comes after the 2024 Point-in-Time Count showed a 29% drop in homelessness, though new data shows more people are entering homelessness. Officials are exploring alternative funding, including the Homekey Plus program under Proposition 1, with an update on prevention strategies due Sept. 16.