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The Trump administration issued plans for a shift in homelessness policy that would slash support for long-term housing programs and move away from a Housing First approach.
- The new Department of Housing and Urban Development (HUD) guidance will govern more than $3.9 billion in Continuum of Care funds, the main source of federal money for homelessness.
Why it’s important: Critics say it could place as many as 170,000 formerly homeless people at risk of returning to the streets.
- While President Trump has long pledged to pursue tougher homelessness policies, the document outlines changes that go deeper and faster than expected.
- The notice implements the President’s vision outlined in the executive order issued in July, which promoted camping bans and involuntary treatment, while criticizing harm reduction efforts.
- Evidence shows that Housing First approaches are effective, while involuntary treatment often is not.
The details:
- The plan cuts aid for permanent housing by two-thirds next year.
- The notice gives funding priority to programs that require services like substance use treatment as a condition of housing, that impose work rules, and that help in the enforcement of camping bans. It also steers funding to areas that pass and enforce those bans.
- It also includes other requirements that shift money away from the local groups that administer the funds to a nationally competitive pool, over which the administration would have greater sway.
Read more: Trump Administration Proposes a Drastic Cut in Housing Grants
Published
November 2025