The city estimates it will face a small shortfall after redirecting Measure E funds again for homelessness solutions

San Jose officials have signed off on the mayor's plan to reallocate a majority of funding meant for affordable housing and put it toward temporary homeless shelters. The City Council voted 7- 4 in a contentious meeting Tuesday to accept Mayor Matt Mahan's March budget message for the 2025-26 fiscal year -- with the elimination of homelessness and related public safety threats as top priorities for funding amid the more than $100 million projected budget shortfall over the next two years.