A message from Lisa Bates
Chief Executive Officer, Sacramento Steps Forward
Last week, on October 28, elected officials from across Sacramento came together to discuss goals and strategies to strengthen partnerships on resolving homelessness. The meeting focused on the urgency of coordination, accountability, and shared commitment to lasting solutions.
As we build on that momentum, our focus must turn to concrete actions that help our community remain stable amid shifting federal policies and funding.
The government shutdown already has begun to disrupt critical support for food security benefits, Medicare, and housing programs. Additionally, the U.S. Department of Housing and Urban Development (HUD) is expected to propose a major shift in federal homelessness funding by capping the share of Continuum of Care (CoC) dollars that can support permanent housing at 30%.
How do federal funds support Sacramento?
Sacramento currently dedicates nearly 87% of the $40.5 million in federal funding awarded in 2024 to permanent housing, supporting 2,197 people in 1,592 subsidized housing units.
- Those living in these homes are among our community’s most vulnerable: approximately 70% live with a disability, 21% are seniors, and 30% are youth.
- Nearly 54% of these individuals have maintained their homes with federal subsidies for more than five years, and almost one in three for over a decade.
What would reduced funding mean?
A shift in funding will affect our community’s capacity by:
- Significantly limiting Permanent Supportive Housing (PSH) and Rapid Rehousing (RRH) units that move individuals out of homelessness.
- Reducing rental assistance and supportive services that enable housing stability.
- Compromising partnerships with landlords that make units available.
More specifically, Sacramento could lose funding for nearly 65% of its current capacity, directly impacting 1,431 individuals and families who rely on these programs for stability.
In addition to the proposed funding shift, delays in the release of federal CoC program funds will strain local programs and disrupt payments to housing providers.
How is Sacramento responding?
With local partners, Sacramento Steps Forward is working to protect housing stability, preserve progress, and advocate for resources that meet the needs of our community. By collaborating, we can most efficiently, effectively, and creatively tackle these issues by:
- Advocating for stable state and federal funding.
- Developing contingency strategies that sustain housing and services.
- Identifying vulnerable individuals and families and providing support that prevents them from falling into homelessness.
We recognize the immense uncertainty of this time and the stress on providers, landlords, outreach staff, and, especially, on those who are unhoused.
We see this moment as an imperative to further invest in a strong homelessness response system for Sacramento, where decisions are data-driven, partnerships are strong, progress is measurable, and our approaches remain compassionate.
In partnership,
Lisa Bates
Chief Executive Officer, Sacramento Steps Forward
