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Oakland Encampment Plan Moves Forward After State Funding Threat Lifted
California agency backs off warning that new policy could jeopardize $45 million in homelessness grants
Jan. 30, 2026 at 6:07pm
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A California agency that previously warned Oakland could lose $45 million in state funding for homelessness over a new, more aggressive encampment removal policy has since pulled back its threat, clearing the way for the city to vote on the controversial legislation as soon as February.
Why it matters
The proposed encampment abatement policy has been a source of debate in Oakland, with concerns raised about its impact on access to critical homelessness resources. The state agency's reversal of its funding threat removes a major obstacle that had stalled the legislation's progress.
The details
The California Interagency Council on Homelessness (Cal ICH) had initially warned that Oakland's draft encampment policy did not comply with the state's 'Housing First' approach, which requires cities to make meaningful efforts to offer shelter before clearing homeless camps. However, in a December 24th email, Cal ICH's executive director Meghan Marshall said the draft ordinance 'meets the minimum requirements of state guidance', even though the agency still has some concerns about the policy.
- In August 2025, the Oakland Office of Homelessness and Alameda County Director of Housing and Homelessness sent Cal ICH a draft of the encampment policy, expressing concerns about its impact on state homelessness funds.
- On December 2, 2026, the Oakland City Council delayed a vote on the encampment abatement proposal, citing Cal ICH's earlier warning that the policy could jeopardize $45 million in state funding.
- On December 24, 2026, Cal ICH's Meghan Marshall sent a letter to Oakland officials stating the draft ordinance 'meets the minimum requirements of state guidance', clearing the way for the city to potentially vote on the policy by the end of February or early March 2026.
The players
Meghan Marshall
Executive director of the California Interagency Council on Homelessness (Cal ICH).
Barbara Lee
Mayor of Oakland.
Jestin Johnson
City Administrator of Oakland.
Ken Houston
Oakland City Council Member who proposed the encampment abatement policy.
Kevin Jenkins
President of the Oakland City Council.
What they’re saying
“They sent that original warning the day before our meeting to create havoc.”
— Ken Houston, Oakland City Council Member
“I'm encouraged that Cal ICH has now clarified that the EAP meets the minimum requirements. With that, we are now in a better position to have a substantive discussion about next steps, including whether and when the plan should return for a vote.”
— Kevin Jenkins, Oakland City Council President
What’s next
The Oakland City Council is expected to vote on the encampment abatement policy by the end of February or early March 2026.
The takeaway
The reversal of the state agency's funding threat removes a major obstacle to Oakland's proposed encampment policy, allowing the city to move forward with a substantive discussion and potential vote on the controversial legislation.
