Tents are set up at a homeless encampment on a Los Angeles freeway in May.
Damian Dovarganes/AP
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Damian Dovarganes/AP
The Trump administration is upending its homelessness policy by sharply cutting funding for long-term housing. Instead, it will redirect the money to temporary housing that requires work and addiction treatment.
This is stated in a statement from the Ministry of Housing and Urban Development. new policy “will restore responsibility” and promote “self-sufficiency” by addressing “the root causes of homelessness, including illicit drugs and mental illness.” He also noted that total funding for homelessness is rising from $3.6 billion to $3.9 billion.
170,000 people may be at risk of losing their homes
Critics warn the overhaul could put 170,000 people at risk of losing their homes again. And they say that the time is terrible. Typically funding notices are released months in advance, but now programs across the country will have little time to apply for new funding. And in many places, there will be a months-long gap after current funding dries up before new money comes in.
“We will move very, very quickly,” HUD policy expert Robert Marbut said in response to such concerns. He also noted that the federal government shutdown delayed notification of the funding, although homelessness advocates say it was already behind schedule.
Another change: HUD will no longer automatically renew existing programs, creating the possibility that formerly homeless people who have lived in subsidized housing for years will be pushed out. The agency is also opening up more funding to religious groups.
The National Alliance to End Homelessness says the new policy could upend the lives of people who have found stability in permanent housing programs, many of whom are elderly or disabled. “HUD's new funding priorities close the door on them, their providers and their communities. Make no mistake: homelessness will only increase as a result of this reckless and irresponsible decision,” CEO Ann Oliva said in a statement.
The new policy could also reallocate more funding to places that enforce the ban on homeless encampments.
“Donald Trump's approach to homelessness does nothing to address the sky-high rental costs that remain the leading cause of homelessness,” Jesse Rabinowitz of the National Homelessness Law Center said in a statement.
The funding change reflects a conservative response to longstanding policies.
For two decades, federal funding has prioritized getting people into stable housing and then offering them treatment. The policy is called Housing First and has long enjoyed bipartisan support. Supporters say the approach has already proven effective in keeping people off the streets.
But critics counter that he has failed to stop homelessness from steadily rising to historic levels.
Those critics include President Trump, who has long called on cities to remove homeless encampments from their streets and parks. The new funding change reflects decree he signed in Julywho also sought to make it easier to keep homeless people in mental hospitals against their will.
Marbut, the HUD policy expert, also said Housing First policies have failed to address rising drug deaths among homeless people from methamphetamine and fentanyl addiction.
“The influence of Housing First has become too powerful,” says Steven Eide, a senior fellow at the Manhattan Institute, a conservative think tank. He calls it a top-down approach and says that for years it was difficult to get funding unless a program followed these policies. Eide says he leaves out a large group of people who may not need permanent housing or who may want involuntary sobriety, which it does not offer.
“I think we'll be looking to reinvest in temporary housing,” he says. This means people can stay in these places for about 18 months to get sober or recover through other means, and then, ideally, move out and make it on their own.
There is broad agreement that the United States needs more support for all types of homeless people: permanent housing, rehabilitation and mental health treatment. But critics of the HUD change worry it will make it harder for some to get help.
“We're moving away from trauma-informed care, and that's problematic,” says Stephanie Klasky-Gamer, president and CEO of LA Family Housing in Los Angeles.
For example, she believes it will lead to more shelters turning people away unless they are already sober or enrolled in rehab or mental health treatment. But for many people, that's a high bar, she says, and it can backfire.









