San Francisco Ends Controversial $5M-A-Year Alcohol Program for Homeless Addicts

The city is shutting down a program that provided controlled amounts of alcohol to unhoused residents struggling with addiction.

Feb. 1, 2026 at 10:55pm by Ben Kaplan

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San Francisco is ending a controversial $5 million-per-year program that supplied alcohol to homeless individuals with addiction issues. The Managed Alcohol Program, launched in 2020 during the COVID-19 pandemic, provided controlled amounts of beer and liquor to prevent dangerous withdrawal symptoms. However, the program only served 55 people at an average cost of $454,000 per client. Mayor Daniel Lurie says the city has terminated all funding for the initiative, calling it a waste of taxpayer money.

Why it matters

The decision to end the Managed Alcohol Program reflects a broader shift in San Francisco's approach to addiction and homelessness under Mayor Lurie's administration. The mayor has moved away from long-standing harm reduction policies, instead prioritizing recovery-focused and abstinence-based services. This change in strategy has faced both praise and criticism from advocates in the city.

The details

The Managed Alcohol Program was launched in April 2020 when the city placed unhoused residents in hotels during COVID-19 lockdowns. Medical staff provided controlled amounts of alcohol to prevent dangerous withdrawal symptoms while stores and bars were closed. Although intended as a temporary measure, the program continued for nearly six years. During its operation, the program served only 55 people, translating to an average cost of roughly $454,000 per client. Mayor Lurie says the city has now fully pulled its support, ending all city contracts for the program.

  • The Managed Alcohol Program was launched in April 2020.
  • The program continued for nearly six years before being shut down.

The players

Daniel Lurie

The mayor of San Francisco who has ended the city's $5 million-per-year Managed Alcohol Program and shifted the city's approach to addiction and homelessness towards recovery-focused and abstinence-based services.

Community Forward

The nonprofit that managed the Managed Alcohol Program in recent years and received millions in public funding, much of which was spent on staff salaries.

Tom Wolf

A former homeless addict who now works in outreach and criticized the Managed Alcohol Program as a waste of public funds that simply enabled continued drug use.

Steve Adami

The head of the Salvation Army's recovery-focused program in San Francisco, who says the city is now rethinking decades of permissive harm reduction policies under Mayor Lurie's leadership.

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What they’re saying

“For years, San Francisco was spending $5 million a year to provide alcohol to people who were struggling with homelessness and addiction — it doesn't make sense, and we're ending it.”

— Daniel Lurie, Mayor of San Francisco (The California Post)

“They [were] wasting our money just paying people to keep using the drug that they're hopelessly addicted to.”

— Tom Wolf, Former homeless addict and outreach worker

“Under Mayor Lurie, they have reassessed the outcomes of those models. That we are a recovery-first city. He's made a significant investment into abstinence-based and recovery-focused services.”

— Steve Adami, Head of Salvation Army's recovery program in San Francisco

What’s next

The city is now facing challenges in addressing addiction and homelessness, with limited detox capacity and long waits for treatment. The end of the Managed Alcohol Program reflects Mayor Lurie's broader effort to reverse years of permissive policies and shift the city's approach towards recovery-focused services.

The takeaway

San Francisco's decision to end the controversial Managed Alcohol Program highlights the city's changing approach to addiction and homelessness under Mayor Lurie's administration. While the program aimed to reduce harm, critics argued it simply enabled continued substance abuse. The shift towards recovery-focused and abstinence-based services reflects the mayor's belief that the city's previous harm reduction policies were ineffective and a waste of taxpayer money.