Gavin Newsom says 'permissive' Dems helped create California’s homeless crisis

LOS ANGELES, CALIFORNIA: California Governor Gavin Newsom delivered a striking critique of his own party during a recent conversation with podcaster Scott Galloway, arguing that Democrats have often been too passive in addressing homelessness and quality-of-life concerns.

Speaking on ‘The Prof G Pod’, Newsom reflected on some of the Democratic Party’s biggest challenges and admitted that voters increasingly view Democrats as ineffective.

During the discussion, he pointed to homelessness as one of the clearest examples of where the government failed to respond quickly enough to public concerns.

Gavin Newsom says Democratic leaders became too permissive

While discussing the homelessness crisis, Newsom argued that many leaders adopted an approach that ultimately made the problem worse.

"The ultimate manifestation of that failure, the byproduct of the affordability crisis, what's happening as it relates to street homelessness," Newsom said.

He specifically highlighted the growth of encampments during and after the COVID-19 pandemic, saying public spaces became increasingly difficult for residents to use and enjoy.

"Somehow we were applying the standard that it was compassionate to step over people in the streets and the sidewalks in the name of, you know, their personal liberty," he said.

Newsom argued that this mindset hurt local communities, businesses, and families while also damaging public trust in government.

The governor described the situation as one of the issues that most strongly fueled voter anger and frustration.

"And so it is the issue that defines people's anger. It's the issue that defines my anger as governor," he said.

Gavin Newsom points to a ‘victim mindset’ among local leaders

During the conversation, Newsom suggested that many local officials approached the issue with what he described as a "victim mindset."

He argued that government leaders acted as though they had little power to address worsening street conditions.

"This sort of victim mindset that, frankly, was almost universal with many of the leaders in local government," Newsom said.

Galloway, who grew up in Los Angeles, acknowledged that homelessness remains one of the most visible issues facing California.

He said that while he enjoys visiting the region, he often notices the scale of the problem whenever he leaves the comfort of tourist and business districts.

Newsom responded by highlighting several policy changes that California has implemented in recent years.

According to the governor, the state previously lacked a coordinated homelessness strategy but has since introduced reforms and adopted stronger measures aimed at helping move people off the streets.

Gavin Newsom admits Democrats are viewed as weak and ineffective

The conversation later turned to the Democratic Party and the lessons Newsom believes leaders should learn.

"You know, I think the biggest problem with the Democratic Party is we're perceived, rightfully, as too slow, weak, and ineffective," Newsom said.

He argued that Democrats need to become more aggressive, more decisive, and more confident when addressing major public concerns.

Newsom also acknowledged that the COVID-19 pandemic significantly damaged trust in government institutions.

"You know, we lost a lot of trust during COVID, and we haven't gotten that back," he said.

Rather than pointing to one specific decision he regrets, Newsom said he believes he was slow to recognize how dramatically public attitudes had shifted after the pandemic.

He said leaders needed to adjust more quickly to changing voter expectations and concerns.

New federal data shows decline in homelessness

Despite the criticism, Newsom pointed to recent progress in California's homelessness numbers.

"Here's the good news. For the first time in close to two decades, Scott — no other governor has been able to say this in decades — we've seen almost a double-digit decrease in unsheltered homeless in the state of California," he said.

Recent federal data appears to support that claim.

The number of people experiencing homelessness declined both in California and across the country last year, according to a newly released federal report.

The report found that California counted 181,934 homeless residents last year, representing a 2.8% decrease from 2024.

Nationally, homelessness declined by 3.3%, marking the first nationwide decrease since 2016. An estimated 745,652 people were experiencing homelessness across the United States.

Released by the US Department of Housing and Urban Development after a five-month delay, the report serves as one of the country's most important measures for evaluating homelessness policies and directing future funding decisions.