Homelessness is down in California and across the country, new federal report says

The federal report shows a 2.8% decrease in California's homeless population and a 3.3% nationwide drop in 2025, marking the first decline since 2016. The Trump administration attributes the decline to reduced immigration in sanctuary cities, while the National Homelessness Law Center credits former President Joe Biden's funding for housing initiatives. California and 18 other states are challenging the Trump administration's shift toward sobriety-based housing and temporary shelters.