Funds for a federal rental assistance program — intended to keep the most vulnerable people housed during the COVID-19 pandemic — are drying up faster than expected, potentially leading to thousands more Californians living on the streets as soon as next year.
As CalMatters’ Ben Christopher explains, the Emergency Housing Voucher program began in 2021, helping 60,000 people across the U.S. pay their rent. Enrollees included people on the verge of homelessness, fleeing domestic violence or escaping human trafficking. About 15,000 Californians are in the emergency program.
The program was meant to be temporary: Congress funded it with a lump sum of $5 billion and the U.S. Department of Housing and Urban Development had until 2030 to spend all the money.
But earlier this month, the federal housing department sent a letter to local public housing authorities informing them that a final payment in the spring may enable some agencies to keep their emergency programs afloat through 2026. After that, however, “no additional funding from HUD will be forthcoming.”
Rent prices are one potential reason why program funds depleted. After the pandemic, rents soared nationwide. Between 2021 and 2025, for example, “fair market rents” in one San Diego neighborhood spiked by 43% — nearly double the overall rate of inflation during the same period, according to the department.
Meanwhile, incomes remained stagnant. Because the voucher program paid the difference between a tenant’s income and their rent, the government had to pay more.
The program’s impending end comes as President Donald Trump’s administration is making aggressive cuts to federal bureaucracy. The administration is considering mass layoffs at the federal housing department and terminated grants for programs that enforced fair-housing laws.
- Tushar Gurjal, a policy analyst at the National Association of Housing and Redevelopment Officials: “We should figure out a way to save this program and make sure these people continue to receive federal rental assistance. None of these folks did anything wrong. They’re just using their vouchers and following all the rules.”
California’s housing crisis, explained: CalMatters has detailed looks at why housing is so expensive in California and why homelessness is so persistent. There’s also a lesson-plan-ready version of these explainers and other information — especially made for teachers, libraries and community groups — as part of the CalMatters for Learning initiative, with Spanish translations.
CalMatters events: CalMatters will host a symposium on April 16 about the mental health crisis among California youth. Register here to attend in person at the Nixon Peabody Office in Los Angeles.
Other Stories You Should Know
Shortfalls of CA’s crime victim fund
Established 60 years ago, the California Victim Compensation Board provides financial aid to eligible crime victims and their families for expenses including funeral costs, income loss and mental health services.
But survivors and advocates say that the board’s strict criteria shut out too many people, and victimize those already traumatized by violence, reports CalMatters’ Cayla Mihalovich.
In the last state budget year, the board denied 9,326 applications, roughly a quarter of all applicants. Appealing a decision takes 325 days to complete on average — far longer than the six month processing time required by law.
The board must also offer in-person evidentiary hearings. But a recent court order — stemming from a three-year court battle — says that for over a decade, the board went by an invalid rule that allowed it to limit hearings to a written record.
For Ruby Marichalar, whose son was stabbed to death in 2012, the board twice denied her application to help pay for funeral costs, without ever meeting her.
- Marichalar: “They didn’t lift a damn finger to help me. I didn’t get a hearing. I didn’t get anything.”
The board is now scrambling to work its way through the backlog: It recently requested to spend an additional $4.4 million to process thousands of appeals faster by hiring more employees.
CA Republicans’ next move
With the midterm elections coming up in 2026, California Republicans are trying to use the momentum they gained in November to help them climb their way out of being a superminority party in the state.
As CalMatters’ Jeanne Kuang explains, the California GOP flipped three seats in the Legislature and increased Trump’s vote share in nearly every county. But to have more say in, for example, state budget negotiations, the party needs to pick up at least seven seats in the Assembly and four in the Senate.
How do they plan to do this? The same way they made ground over the past six years: Focus on Latino voters; hold Democratic policies liable for the state’s crime and the cost-of-living issues; and campaign on ballot initiatives, like they did with Proposition 36.
But one big question mark is Trump. The success of the Republican party in California has been due, in part, by avoiding associations with Trump, said one longtime GOP consultant. Though affiliating with him could be detrimental for the midterms, party leadership also acknowledged they need to keep Trump loyalists engaged.
And lastly: Funding freeze has CA businesses worried
The Trump administration’s federal funding freeze has put billions of dollars in small business loans and grants on hold. CalMatters economy reporter Levi Sumagaysay and video strategy director Robert Meeks have a video segment on California entrepreneurs’ concerns about lasting economic damage as part of our partnership with PBS SoCal. Watch it here.
SoCalMatters airs at 5:58 p.m. weekdays on PBS SoCal.
California Voices
CalMatters columnist Dan Walters: A Medi-Cal budget shortfall and money for Los Angeles County’s wildfire recovery suggests that Gov. Gavin Newsom’s “modest surplus” projected in January will morph into a deficit for the May revise.
Other things worth your time:
After arrest of pro-Palestinian student organizer, what rights do visa holders have? // Los Angeles Times
Mexican consuls in CA meet with Newsom to explore new collaborations // The Fresno Bee
Silicon Valley tech giants cozied up to Trump — his administration is still suing them // The Mercury News
The prime suspect behind the Eaton Fire: A ‘zombie’ power line // The Wall Street Journal
Federal workers rally in SF against Trump cuts // San Francisco Chronicle
A first look at SF Mayor Lurie’s yearlong plan on homelessness response // KQED
This congressional district is purple, but the crowd at one town hall was overwhelmingly anti-Trump // The San Diego Union-Tribune