The Department of Commerce is requesting general fund–state (GFS) appropriations of $974.9 million for 2027–29, which would be an increase of $129.5 million (15.3%) compared to enacted appropriations for 2025–27. The increase includes a carry-forward reduction of $193.3 million and a net new policy increase of $322.8 million.

The request includes $88.0 million in 2027–29 and $88.0 million in 2029–31 to maintain homeless housing programs. According to the request, $118 million has been appropriated from the GFS for these programs in 2025–27, but carry-forward funding for 2027–29 is just $39 million from the home security fund account. Commerce notes, “Homeless housing programs face growing financial pressure as operating costs have increased faster than state appropriations and dedicated revenue streams have declined or stagnated.” The dedicated revenue streams are from document recording fees, which are the source of revenue for the home security fund account and the affordable housing for all account.

At the same time, Commerce proposes shifting $25.0 million in spending authority “for some housing division expenses” from the GFS to the home security fund account ($15.0 million) and the affordable housing for all account ($10.0 million) in 2027–29.

Other notable proposed new policies include:

• $146.0 million in 2027–29 and $0 in 2029–31 to continue operating permanent housing projects following federal funding changes to the Continuum of Care program. (However, as the request notes, the federal funding changes are being challenged in court.)
• $42.7 million in 2027–29 and $42.7 million in 2029–31 in ongoing funding for services for victims of crime. The carry-forward level for 2027–29 does not include any funding for this purpose.
• $20.0 million in 2027–29 and $20.0 million in 2029–31 for the home energy assistance program, which helps low-income households pay utility bills. The carry-forward level includes $17.5 million in funding for this program.
• $14.0 million in 2027–29 and $14.0 million in 2029–31 for legal defense funding for low-income immigrants. The 2025–27 budget included $18.0 million for this purpose, but the carry-forward level for 2027–29 includes just $4.0 million.
• $3.0 million in 2027–29 and $3.0 million in 2029–31 “to strengthen Commerce’s capacity to support businesses,” with a focus on export assistance and business resilience, foreign direct investment and global investment attraction, Governor’s Economic Development Council, and local government capacity for industrial project readiness and permitting coordination.

(Previous posts on the 2027–29 budget requests are available here.)