California will distribute $52.6 million in federal grant funding to support housing, infrastructure improvements and homelessness services across the state.
The state acquired the funding in 2025 through the federal Community Development Block Grant program and Emergency Solutions Grants. According to Newsom, the projects are expected to benefit more than 160,000 Californians by improving streets, sewer systems, public facilities and recreational spaces, investments that also support homelessness prevention by removing infrastructure barriers to housing and services.
Community Development Block Grant funding has been contributing to California’s housing and other critical needs for over 50 years. In 2025, it supports 38 projects in 20 counties. The CDBG awards include $1.5 million each for economic development in Crescent City and homebuyer assistance in Ukiah, $18 million for public facility improvements such as parks and community centers, $9.9 million for sewer and street upgrades, and $2.5 million for planning and technical assistance projects across multiple communities.
Another $14.3 million was awarded through Emergency Solutions Grants to 52 projects serving 25 counties. Emergency Solutions Grant funding will provide assistance to support people experiencing homelessness, improve emergency shelter operations, provide rapid rehousing assistance, and prevent households from becoming homeless. The grants are distributed to counties and service providers to support locally driven approaches.
Both programs are administered in California by the Department of Housing and Community Development.
Imperial County received two fully funded grants focused on its colonias, rural communities that often lack adequate infrastructure. One grant will support generator installations and HVAC upgrades at community facilities. The upgrades will improve resilience during extreme weather and power outages. The second will update the county’s Colonias Master Plan to help identify future infrastructure and facility needs.
State officials say the funding reflects continued use of federal programs to address long-standing housing and infrastructure needs while helping local governments respond to homelessness and community development challenges.
Photo by Kindel Media from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
