Story perspectives

Proposition 1 Delays: Tariffs and Supply Issues Stymie Projects

3/13/2026

Summary

Story summary

Ten Proposition 1 projects planned to open in 2025 have not started, with nine delayed, one cancelled.
Governor Gavin Newsom attributed tariffs, supply chain issues, and local real estate challenges to the delays.
Despite delays, Proposition 1 has funded 177 projects to create 6,919 residential treatment beds and 27,561 outpatient slots, exceeding goals.
Additionally, $768 million funds permanent housing through Homekey+, with the first projects expected to complete this summer.

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Story summary

Ten Proposition 1 projects planned to open in 2025 have not started, with nine delayed, one cancelled.
Governor Gavin Newsom attributed tariffs, supply chain issues, and local real estate challenges to the delays.
Despite delays, Proposition 1 has funded 177 projects to create 6,919 residential treatment beds and 27,561 outpatient slots, exceeding goals.
Additionally, $768 million funds permanent housing through Homekey+, with the first projects expected to complete this summer.