California votes to spend $6.4B on homeless crisis despite spiraling debt

California voters have passed a measure to spend billions of dollars on the state’s spiraling homeless crisis despite the state's finances being in the red.

Gov. Gavin Newsom, left, and people at a homeless encampment in California. (Myung J. Chun / Los Angeles Times via Getty Images | Robyn Beck/AFP via Getty Images)

CA'S NEWSOM CALLS FOR SUPPORT FOR HOMELESS CRISIS INITIATIVE, MENTAL HEALTH ADVOCATES SAY IT WILL BACKFIRE

"This is the biggest change in decades in how California tackles homelessness and a victory for doing things radically different," Newsom said in a statement after the borderline vote. 

"Now, counties and local officials must match the ambition of California voters. This historic reform will only succeed if we all kick into action immediately – state government and local leaders, together."

The state will now be able to borrow $6.38 billion to build 4,350 housing units, half of which will be reserved for veterans, and add 6,800 mental health and addiction treatment beds.

Homeless encampments line the streets in Oakland, California, on March 15, 2024. The city remains plagued by homelessness as nearby businesses close their doors due to safety concerns. (DWS for Fox News Digital)

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Proposition 1 collected more than $15.7 million, with a donor list that included a Bay Area tribe, labor unions, builders, health care providers, Uber and the California Chamber of Commerce, The New York Times reported. The only organized opposition collected a mere $1,000.

Opponents, including social service providers and county officials, said the change will threaten programs that are not solely focused on housing or drug treatment but keep people from becoming homeless in the first place.

Critics have also said that rural counties with far fewer homeless people per capita will be forced to divert a larger percentage of funds to housing.

The Associated Press contributed to this report. 

Michael Dorgan is a writer for Fox News Digital and Fox Business.

You can send tips to michael.dorgan@fox.com and follow him on Twitter @M_Dorgan.

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