
Tents are set up in a homeless encampment along a Los Angeles freeway in May.
Damian Dovarganes/AP
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Damian Dovarganes/AP
The Trump administration is upending its homelessness policy, with deep cuts to funding for long-term housing. Instead, it will shift money toward transitional housing that requires work and addiction treatment.
In a statement, the Department of Housing and Urban Development said the new policies will “restore accountability” and promote “self-sufficiency” by addressing the “root causes of homelessness, including illicit drugs and mental illness.” It also noted that overall homelessness funding is going up, from $3.6 billion to $3.9 billion.
170,000 people could be at risk of losing their housing
Critics warn the major overhaul could put 170,000 people at risk of losing their housing again. And they say the timing is terrible. Normally, funding notices go out months earlier, but now programs around the country will have little time to start applying for new funding. And in many places, it will leave a months-long gap after current funding runs out and before new money flows.
“We’ll move very, very fast,” said HUD policy expert Robert Marbut, in response to such concerns. He also noted the federal shutdown delayed the funding notice, though homelessness advocates say it was already behind schedule before that.
In another change, HUD will no longer automatically renew existing programs – creating the possibility that formerly homeless people who’ve lived in subsidized housing for years will be forced out. In fact, Marbut said the agency expects some programs to no longer receive funding because it will go to others instead. The agency also says it’s opening up more funding for faith-based groups.
The National Alliance to End Homelessness says the new policies could upend life for people who’ve found stability in permanent housing programs, many of them seniors or disabled.
“HUD’s new funding priorities slam the door on them, their providers, and their communities. Make no mistake: homelessness will only increase because of this reckless and irresponsible decision,” CEO Ann Oliva said in a statement.
The new policies could also shift more funding to places that enforce bans on homeless encampments.
“Donald Trump’s approach to homelessness does nothing to address the sky-high cost of rent, which remains the main cause of homelessness,” Jesse Rabinowitz of the National Homelessness Law Center said in a statement.
The funding shift reflects a conservative backlash to longstanding policies
For two decades, federal funding has prioritized getting people into permanent housing and then offering them treatment. That policy is called Housing First and has long had bipartisan support. Backers say the approach has a proven track record of keeping people off the streets.
But critics counter that it has failed to stem the steady rise of homelessness to what are now historic levels.
Those critics include President Trump, who has long pushed cities to clear homeless encampments from streets and parks.

