Homelessness in California has escalated beyond a local crisis and is now considered a national security concern, according to foreign policy analyst Lisa Daftari.
Fentanyl, manufactured in China and trafficked through Mexico by designated terrorist organizations, is a significant factor contributing to the rising number of individuals living on the streets, Daftari stated. The substance is reportedly a primary driver of overdose deaths among the unhoused population in California.
State data indicates that overdose is the leading cause of death for unhoused Californians. In San Francisco, fentanyl is present in the majority of overdose deaths occurring on the street. Similar trends are reported in Los Angeles County, where behavioral health surveys reveal that approximately one in three unhoused individuals admit to regular illicit drug use, a figure independent researchers believe is higher when methamphetamine and fentanyl are considered together.
Daftari points to Chinese chemical companies, particularly in Guangzhou, Wuhan, and Shandong, as the source of precursor chemicals used by Mexican cartels, such as the Sinaloa Cartel and Jalisco New Generation Cartel, to produce fentanyl. The U.S. Department of State has sanctioned some of these Chinese companies, accusing Beijing of "actively sustaining and expanding the business of poisoning our communities."
The financial proceeds from these operations are allegedly laundered back into the U.S. through real estate and shell companies on the West Coast. This intricate supply chain, starting in China and moving through Mexico before reaching American streets, represents a national security issue that directly impacts California.
In contrast to federal efforts to disrupt drug supply chains, California's response to homelessness has primarily focused on building housing, distributing naloxone, and addressing addiction as a social service problem. Data from the White House and the Office of the Director of National Intelligence (ODNI) shows a 22 percent decrease in fentanyl overdose deaths nationwide from 2024 to 2025, a reduction the ODNI attributed to "disruptions to the production supply chain."
However, California's homelessness figures are moving in the opposite direction. The city of Los Angeles has seen a 3.4 percent increase in homelessness, with unsheltered homelessness rising by 7.9 percent. This divergence suggests that federal enforcement is reducing overdose deaths, while state housing policies are not impacting the number of people living on the streets.
Daftari argues that treating a problem fueled by a foreign adversary's actions as solely a social service issue is insufficient. Ports in California, such as Long Beach and Los Angeles, handle a significant portion of U.S. containerized freight, and major transportation corridors like the I-5 connect directly to the Mexican border, creating potential points of entry for illicit substances.
While acknowledging that homelessness is also a complex issue involving mental health, poverty, and individual circumstances, Daftari asserts that it cannot be fully resolved without addressing the foreign-origin supply chain of drugs like fentanyl.