Sacramento homeless cuts will mean less for young parents, LGBTQ community
AI-generated summary reviewed by our newsroom.
- City cites 40% state funding drop and $60M deficit to justify reductions.
- City Council approved reduced contracts, cutting shelter funding for pregnant youth.
- Advocates warn cuts will lengthen stays, increase street exits and reduce housing exits
Sacramento’s latest homelessness decision will cut funding and reduce services at some shelters that support pregnant youth, the LGBTQ+ community and young parents.
The move continues a new approach to homelessness under Mayor Kevin McCarty and Brian Pedro, the director for the Department of Community Response, amid an ongoing budget deficit and decreased state funding. In the last year, the city has scaled back funding across multiple homeless providers.
On Tuesday night, the City Council approved the changes as part of its consent calendar, typically reserved for non-controversial agenda items that don’t require much discussion. The council voted in favor of new nine-month contracts to continue shelter operations at three organizations serving transitional aged youth, typically people from 16 to 25.
Under the reworked deals, two of those operators — the Sacramento LGBT Community Center and Waking the Village — will receive between $15,000 and $18,000 less per month. Leaders of both organizations said the cuts will result in less staff, fewer hours and reduced funding for basic needs.
“We’re going to find in Sacramento, the whole system is going to have less flow, which means either the youth in our shelter will have to exit back to the streets, or they will have much longer stays,” said Bridget Alexander, executive director for Waking the Village which serves homeless youth with children and who are pregnant.
The new contracts reflect significant reductions in state funding and Sacramento’s financial situation, said city spokesperson Julie Hall in a written statement on Wednesday afternoon.
McCarty did not immediately respond to a request for comment.
Earlier this year, the city learned it would receive roughly 40% less in state homelessness funding after Sacramento County’s most recent Point-in-Time Count showed a decrease in unsheltered homelessness. Sacramento is also facing a structural budget deficit, with projections indicating a $60 million shortfall in the upcoming fiscal year.
Hall added that the city acknowledges the decreased funding and is working with operators to streamline their efforts.
“The choice before DCR — and the city at large — is a relatively simple one: We can reduce contracts and continue to serve as many people as possible, or we can maintain more costly programs and ultimately help fewer people,” Hall said.
David Heitstuman, CEO of Sacramento LGBT Community Center, said the new contracts will lead to “significant changes” in their short-term emergency shelter program which serves homeless youth identifying as LGBTQ. Among the expected changes are fewer meals, reduced support services and limited hours. The program has historically been available 24 hours a day.
Heitstuman and Alexander said these reductions will only exacerbate the issues stemming from recent federal government policy changes on homelessness. The proposals are expected to limit money toward permanent housing in favor of more temporary shelters.
“All of those are hitting homeless programs super hard,” Alexander said.
Councilmember Lisa Kaplan, who was against the new contracts, acknowledged the city’s financial limits but said it should be more mindful about where to cut costs. She noted shelters serving transitional aged youth often have higher positive outcomes and that it’s crucial to target a vulnerable population early in their lives.
Heitstumann said 73% of clients exited the center’s shelter programs to improved situations in 2024. About 29% of people exit to improved situations at most of the city’s shelters, according to data from August.
“This is where we have to invest before we lose them to the streets,” Kaplan said on Wednesday. “Why not invest in where we know success can happen?”
This story was originally published December 10, 2025 at 4:21 PM.
