Newsom’s ‘National Model’ For Homeless Wracked By Fraud

Gov. Gavin Newsom has made reducing the homelessness crisis in California a top priority, saying the scale of the state’s efforts is “unprecedented” and calling for the continued expansion of his signature effort – Project Homekey – that has already cost $3.75 billion. 

But in a state with more than 181,000 homeless individuals, or about one-third of the U.S. total, Homekey has been marred by failures and scandals, including a lack of government oversight and accountability as well as a federal investigation into allegations of fraud in Los Angeles. 

Newsom, who appears to be preparing for a presidential bid in 2028, could make Homekey, which he calls a “national model,” a talking point in his campaign. The state claims the program has created almost 16,000 permanent housing units that will serve over 175,000 people. But since the state doesn’t track outcomes – whether people placed in housing saw their lives improve or if they returned to the streets – the program’s effectiveness is unclear, according to a critical 2024 state auditor’s report. 

“[Our budget] is bloated with homeless spending, a bottomless pit and taxpayer boondoggle that doubles down on failure year after year,” the Republican-turned-Democrat Los Angeles Councilwoman Traci Park said at a meeting in May. “Hundreds of millions of dollars on bridge homes and Homekeys and interim housing sites, and no one can even tell us which ones are operational.”

What is clear is that homelessness in California has skyrocketed in the five years Homekey has been in place, growing by more than 20%, according to the Public Policy Institute of California. That’s an increase of some 36,000 people between 2019 and 2024.

Homekey has been touted by officials as a more cost-effective way to house the homeless. By hiring developers to convert excess motel and hotel rooms and other existing structures into permanent housing, the costs are two to three times lower than building new units, according to the auditor’s report.

Keep reading

N.Y.: ‘Level 2’ sex offender with 16 prior arrests charged with assaulting 20-year-old NYU student

A 45-year-old homeless man with a lengthy history of sex crimes and violence against women was arrested on Tuesday after a brazen daylight assault on a 20-year-old New York University student just steps from the school’s Manhattan campus.

James Rizzo, 45, obtained his 17th arrest on Tuesday after attacking NYU sophomore student Amelia Lewis, 20.

According to the report, Rizzo quickly approached the NYU sophomore as she walked to class, slapped her forcefully on the buttocks, then struck her head, knocking her to the ground.

“I just really want to emphasize how not OK this is. I am a student at NYU. I should not be scared to be walking the street to go to my 9:30 a.m. class. These people are disgusting, and they should not be able to be walking around the street freely targeting girls and doing this. Cause I heard that this guy did this a month ago,” Lewis said on a TikTok video, where she further discussed the incident with her friends, family, and online followers.

Police say Rizzo is listed on New York’s Sex Offender Registry as a Level 2 offender, with two publicly accessible mugshots. According to the registry, he was convicted in March 2023 for forcing himself onto another person’s intimate parts during an assault that occurred the month before.

“The University is pleased that a suspect has been apprehended in the attack on one of its students that took place Monday morning on a Broadway sidewalk,” NYU spokesperson John Beckman exclaimed. “We take this incident very seriously. We are continuing to offer support to the student, and our Campus Safety Department assisted the victim and worked with the police investigating the incident.”

Following the most recent incident, Rizzo was later arrested and charged with persistent sexual abuse, forcible touching, and assault. 16 prior arrests of his similarly involved sex offenses or sexual misconduct, a law enforcement source reported.

Just days before the attack on the NYU student, Rizzo also purportedly shoved a 68-year-old woman as she walked along Fifth Avenue at around 8:45 p.m. on Thanksgiving. In what investigators described as an unprovoked assault, he reportedly struck her with his elbow so forcefully that she fell to the ground and suffered a deep cut.

He was also charged with burglary in connection with a separate incident in a nearby building, with some reports indicating multiple counts. New York authorities stated that they found Rizzo “in the act” as he was burglarizing an apartment near Washing Square Park on Tuesday. Police connected Rizzo to four other burglaries committed at the same location, all around 1 a.m. on Tuesday.

Victims of the theft include a 28-year-old man who woke up to find his suitcase and backpack gone. Another unnamed man, 29, had three laptops, headphones, and his backpack stolen. Lastly, a 58-year-old woman had $3,150 in items taken, police added.

“I just feel very lucky,” the unidentified woman attacked on Thanksgiving said on Wednesday. “[I’m] very lucky that he didn’t have a weapon or that it didn’t happen in the subway station and throw me on the tracks.”

In addition to the burglary charges, police have since announced that he faces assault counts for both attacks, as well as sexual abuse and forcible touching stemming from the assault on Lewis.

Keep reading

Woke Portland Politician Who Demanded “Unhoused Neighbors” Be Given a Place to Sleep Has Home Torched by Homeless Person

A Portland Democrat who once called for homeless individuals to be given housing suffered an ironic and cruel twist of fate last week.

As The Oregonian reported, 51-year-old homeless man Vashon Locust was arrested on Tuesday after starting a fire that torched Portland City Councilor Candace Avalos’ townhome and car.

He faces charges of reckless burning, second-degree mischief, and trespassing. These are all misdemeanors.

According to a police affidavit obtained by the paper, Locust snuck into a shed near Avalos’ home on October 26 and attempted to use an electric outlet.

When that failed, he set a fire to stay warm, but he later claimed that it got out of control and tried to put it out.

“He shared that it was very cold that night and his clothing was wet,” the affidavit reads. “Locust attempted to extinguish the fire with his foot.”

Locust then fled to a nearby church.

On October 28, Locust allegedly returned to the scene of the crime to inspect the remains.

Avalos and her cat managed to escape the incident unharmed. She claimed afterward that she was targeted for her political beliefs.

Whatever the cause, this didn’t happen in a vacuum,” she wrote. “In our current national context, it’s hard not to connect this moment to everything happening around us — the threats, the division, the way public service sometimes puts a target on your back.”

The Daily Mail notes that Avalos has long been an apologist for Portland’s homeless population.

She even wrote a column in 2021 titled: “Our unhoused neighbors deserve a safe and clean place to sleep.”

Locust has been arrested more than 50 times for various felony and misdemeanor charges since 2006, according to court records obtained by The Oregonian.

His most recent arrest occurred in February. In this incident, a woman in North Portland reported that Locust would not leave her property and chased her while waving around a stick.

The Oregonian notes that Locust has not been arraigned on the reckless burning charge at this point, and no attorney has been assigned to his case.

He remains in jail until his first court appearance.

Keep reading

Hawaii Has The Highest Homelessness Rate In America, Mississippi The Lowest

There are around 772,000 homeless Americans (nearly 230 for ever 100,000 Americans), according to the last time a point-in-count assessment was done in 2024.

In this visualization, Visual Capitalist’s Pallavi Rao, take a look at the highest homelessness rates by state, measured per 100,000 residents.

The data for this visualization comes from the U.S. Department of Housing and Urban Development, paired with 2024 population estimates from the U.S. Census Bureau.

⚠️ Caveats: Point-in-time counts were conducted in January, 2024 by local Continuums of Care (CoCs), with latitude in methodology. They risk undercounting unsheltered populations, people couch‑surfing, or those avoiding contact.

Keep reading

Study Reveals Taxpayer Funds Meant to End Homelessness Are Being Used to Fund the Radical Left’s Agenda

A new study has exposed waste and abuse in the industry that is meant to ‘end’ homelessness. It revealed that taxpayer dollars that have been earmarked for this problem have been funneled to radical left wing causes for political reasons.

It actually makes perfect sense. There are lots of people who make a ton of money fighting homelessness. Why would they want the problem to be solved? That would mean an end to their industry.

This is a reminder that progressives do not actually care about the homeless. They see them as a means to an end. A way to fund their preferred political causes.

FOX News reports:

A new study just exposed the corruption behind America’s homelessness crisis

A groundbreaking investigation, “Infiltrated” – backed by more than 50 pages of documentation from the Capital Research Center in cooperation with Discovery Institute – pulls back the curtain on a vast system of corruption. It reveals how billions in taxpayer funds intended to lift people out of homelessness have instead bankrolled radical activism and anti-American political agendas, betraying both the taxpayers who fund it and the homeless they were meant to help…

It exposes how radical networks have quietly embedded themselves within leading homelessness nonprofits, sharing infrastructure, donors and ideology.

What began as a movement rooted in compassion has metastasized into what can only be described as a Homelessness Industrial Complex – a sprawling web of nonprofits, bureaucrats and activists feeding off the very crisis they claim to solve.

They’ve built an empire of corruption draped in “evidence-based” slogans that shield politics, protect paychecks and betray the vulnerable.

The report lays it bare: these networks posture as defenders of America’s homeless, yet in truth, they have become their greatest exploiters, dependent on failure to sustain power.

Keep reading

New Report Exposes Billions in Funding for the ‘Homeless Industrial Complex’

Americans spend billions of dollars to combat homelessness, through donations and taxpayer funding, but the “Homeless Industrial Complex” uses this money for political activism that actually demonizes the policies more likely to solve the crisis, according to a new report.

“Fringe groups in the Homeless Industrial Complex like to characterize homelessness as a symptom of societal injustices, such as systemic racism, police violence, or capitalism,” Scott Walter, president of the Capital Research Center, which released the report, told The Daily Signal in a statement Tuesday. “Anyone who disagrees with their tried-and-not-true policy recommendations is called uncompassionate or greedy.”

The report, “Infiltrated: The Ideological Capture of Homelessness Advocacy,” focuses on the 759 organizations that filed amicus briefs in the Supreme Court case Grants Pass v. Johnson (2024), arguing that laws against camping on the sidewalk violate the Eighth Amendment prohibition on “cruel and unusual punishment.” The Supreme Court disagreed, but the nonprofit support for this claim illustrates how organizations founded to help solve the homelessness crisis engage in activism that arguably exacerbates it.

The Capital Research Center report finds that the nonprofits collectively have $9.1 billion in total revenues and received at least $2.9 billion in government grants (32% of their revenues), according to IRS filings.

Attacking Trump and Conservatives

The Southern Poverty Law Center, a left-wing nonprofit that puts mainstream conservative and Christian groups on a “hate map” alongside the Ku Klux Klan and has an endowment of more than $700 million, was the second-largest nonprofit to sign an amicus brief in the Grants Pass case.

The SPLC’s involvement “illustrates the disconnect between those charities that provide genuine services to the needy, and those that use their resources to advance a left-wing ideological agenda,” Walter said.

“When President [Donald] Trump signed a series of commonsensical executive orders in 2025 to protect public safety and address the root causes of homelessness, the SPLC and other allied groups accused him of human rights violations,” he noted.

Trump’s order “Ending Crime and Disorder on American Streets” notes that America hit a grim milestone when 274,224 people lived on the streets on a single night in January 2024, and that most of the homeless “are addicted to drugs, have a mental health condition, or both.” His order directs the federal government to enforce bans on open illicit drug use and on urban camping and shifting the homeless into “long-term institutional settings for humane treatment.”

In response, SPLC Deputy Legal Director Kirsten Anderson accused Trump of “resurrecting unlawful and outdated approaches to housing that are rooted in racist stereotypes and bias against people with disabilities.”

Keep reading

New Report: How Extremists Infiltrated Homelessness Advocacy in America

Today, the Capital Research Center (CRC) released a new report in cooperation with Discovery Institute exploring how extremist ideological movements are exploiting America’s homelessness crisis, which can include hundreds of thousands of vulnerable people on any given night.

Using financial data, legal records, and original research, the report uncovers a vast network of homelessness advocates that spend billions in taxpayer dollars and philanthropic grants on everything but obvious solutions. The report demonstrates that counterproductive policies have been used for years which do not solve the homelessness problem, but rather exacerbate common root causes of homelessness, including mental health challenges and substance abuse.

The key findings of the report expose the groups that have co-opted the homelessness issue in order to advance their own policy agenda, which, if left unchecked, will result in radical transformations for the entire nation. Groups aligned with radical — and even extremist — worldviews, ranging from anti-police and anti-capitalist movements to groups that express support for foreign terrorist organizations. They include, among others:

  • Western Regional Advocacy Project: The Western Regional Advocacy Project (WRAP), a 501(c)(3), has received support from Tides-affiliated entities and has coordinated anti-sweep campaigns across cities, tying housing to anti-capitalist critiques in publications like Street Spirit, which labels U.S. governance “neoliberal fascism.” In fact, the nonprofit glorifies violence targeting law enforcement and is a state-level endorser of the Housing Justice platform.
  • Autonomous Tenants Union Network (ATUN): The group believes that “overthrowing capitalism” is required for solving the country’s homelessness problem. Its website states: “We fight for a world without landlords and without rent. We fight to build tenant power in order to end the immiseration of the poor and working classes that housing represents under capitalism and to contribute to the struggle to end capitalism itself.”
  • Right to the City Alliance: This 501(c)(3) nonprofit, known for its protests through the national Homes for All campaign, has engaged in joint endorsement of pro-Hamas 501(c)(3) nonprofits including the U.S. Campaign for Palestinian Rights (USCPR) and the Grassroots Global Justice Alliance that declared, “From Palestine to Mexico, all borders and militarized violence have got to go!”

These are a few examples of actors exploiting structural vulnerabilities in the nonprofit sector — including lax oversight, complex funding channels, and even the legal system — to advance ideas that are not merely unorthodox, but deeply destabilizing for our country.

Keep reading

More Americans Experienced Homelessness During Biden’s Term

The number of adults experiencing homelessness is on the rise in the United States.

As Statista’s Anna Fleck shows in the chart below, using data from the U.S. Department of Housing and Urban Development, 771,480 people were living in a state of homelessness in 2024, marking an 18 percent increase from the year before.

You will find more infographics at Statista

Two thirds of these were individuals, while one third were people in families.

Last year saw a particularly worrying rise in the number of families entering homelessness, up 39 percent from 2023, as individuals saw a 9.6 percent rise.

While it remains more common for men to experience homelessness than women in the U.S., at 459,568 men (60 percent) to 302,660 women (40 percent), the gap is narrowing.

Keep reading

2 LA men charged with fraud in misuse of public funds meant for combating homelessness

Two Los Angeles-area men faced federal charges in separate criminal cases as they are both accused of fraudulently acquiring public funds that were allocated to address homelessness and build affordable housing, the Department of Justice (DOJ) announced Thursday.

Cody Holmes of Beverly Hills was in custody as of Thursday after he allegedly used fake bank records to receive nearly $26 million from the California Department of Housing and Community Development (HCD) for Shangri-La Industries LLC, for which he previously served as a CFO.

The money from Project Homekey was supposed to be used to build affordable housing in Thousand Oaks, but instead, Holmes, 31, spent the money to pay credit card bills and purchase good at luxury retailers, the DOJ alleged.

“Even though the developer received all the money from the state, the developer did not complete the construction of the Thousand Oaks project,” Acting U.S. Attorney Bill Essayli said during a news conference Thursday. “Essentially, he stole the money.”

In a separate case, Steven Taylor, a developer and real state agent, of Brentwood was released on a $3.6 million bond, the DOJ said, after he was charged with bank fraud, identity theft and money laundering.

Federal investigators said Taylor also used fake bank records to obtain loans and lines of credit. The 44-year-old is accused of using the fraudulently obtained funds to flip a Cheviot Hills home and selling it to a homeless housing developer for more than double his original purchase.

“Taylor had contracted to sell the property, which he acquired for only $11 million, fraudulently, to Weingart, a homeless housing developer, that purchased the property for a whopping $27 million in a transaction that was hidden from the victim lender and others,” Essayli added.

Akil Davis, FBI’s assistant director in charge of the Los Angeles Field Office. said Taylor also tried to enrich his business in high-end neighborhoods of Los Angeles.

“Taylor’s actions not only misled banks, but also took advantage of the city and state’s efforts to combat the homelessness crisis, Davis said.

Keep reading

Sin City’s shame: As tourists abandon Las Vegas, 1,500 forgotten ‘Mole People’ are left behind in rat-infested tunnels below the Strip

Tourists may have deserted the gambling capital of the world but the number of homeless has skyrocketed. Among them are the ‘Mole People’ who dwell in the decaying tunnels below the Las Vegas Strip. 

A petite blonde-haired woman in a red sundress, who goes by Natasha, emerges from her home under the Sahara Hotel and Casino on a sweltering late September day.

She is just one of an estimated 1,500 people, many of whom are drug, alcohol or gambling addicts, who live underneath the glittering Strip in a vast 600-mile system of storm drain tunnels built in the early 1990s.

At first glance she could be mistaken for an average tourist in town to play blackjack or see a show.

It’s not until she makes her way through the piles of garbage, including discarded shoes, a broken stroller, used syringes, old pizza boxes, dirty blankets, torn-open pillows, and leftover bags of junk food, and comes closer that you can see she’s missing a front tooth and has sores all over her legs that are a telltale sign of fentanyl abuse.

Natasha, from Anchorage, Alaska, admits she’s high but is also lucid enough to explain her situation and describe life in the tunnels because, she says, many who live alongside her cannot. 

She has been underground on and off for two years.

‘When I first came on the Strip – I’ve been here for a year – I was living in a truck,’ she told Daily Mail.

‘Then my boyfriend died [of an overdose] and so I’ve been down here off and on for weeks. I never knew how bad the whole [homeless] situation was here.

‘People are sleeping in alleyways and living by dumpsters or they’re in shelters. The people in the tunnels don’t want to stop using drugs. It makes them happy. 

‘They can’t do that with a normal lifestyle or any place where they have to follow rules.’

Since 2022, homelessness in Las Vegas (and the wider Southern Nevada/Clark County area) has risen sharply, according to federal Point-in-Time counts.

In 2022, there were just over 6,000 people counted as homeless on a single night. By 2023 that number grew to 6,566, and by 2024 it had jumped to about 7,906 — an increase of 20 percent in one year and about 36 percent over two years.

By contrast, Vegas has seen a sharp decline in tourism through 2025, with visitor numbers down more than 11 percent year-over-year in June and about 7 percent for the first half of the year. 

Analysts say rising prices – bottled water can cost as much as $12 or $14 in hotels along the Strip and resort fees, parking and food costs have increased exponentially – along with weaker foreign currencies and a slump in international visitors have caused Vegas to be a city currently down on its luck. 

International tourism has suffered the steepest drop: visitors were down by more than 13 percent in June alone.

Homeless people in Vegas do not have to live in the tunnels. They have the option of going to what locals call The Courtyard, the primary hub for unhoused people in the city.

Keep reading