Homelessness policy across the U.S. could see significant changes under the Trump administration’s plans to cut funding for long-term housing programs. The plans, first reported by The New York Times, would redirect funding to short-term programs that impose work rules, help the police dismantle encampments and require homeless people to accept treatment for mental health or addiction.
The Times reported that the changes are detailed in a 100-page notice from the Department of Housing and Urban Development (HUD), which HUD plans to release in the coming days.
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What the plans say
Under the new plans, the administration would be able to reallocate more than $3.5 billion in Continuum of Care funds, the primary funding source for long-term housing.
The Continuum of Care program partners with communities to provide housing and services to both sheltered and unsheltered individuals, with the goal of placing them in permanent housing.
The program often benefits families with children and those who have experienced homelessness in the past, in combination with being chronically ill or having a disability.
The Times reports that by relocating or cutting these funds, most people in Continuum of Care homes nationwide could lose their support.
“There are people who have been living in those units for five years, eight years,” said Ann Oliva, the chief executive of the National Alliance to End Homelessness, an advocacy group. “No one can wrap their head around the idea that HUD is about to kick 170,000 vulnerable people out of their homes. People don’t know what’s about to hit them.”
The funding would be reallocated to short-term programs that require individuals to work and seek treatment for addiction and mental health concerns.
“HUD is no longer in the business of permanently funding homelessness without measuring program success at promoting recovery and self-sufficiency,” a HUD spokesperson told Politico. “There will be more news on this much-needed paradigm shift soon.”
Looking at the numbers
Politico examined the specific numbers of the new plan and found it would change the percentage of funds allocated towards permanent housing from 87% to 30%. Additionally, the plans could cut the available funding for permanent housing in 2026 to less than half, from $3.3 billion to $1.1 billion.
Politico also noted President Donald Trump’s budget for 2026 proposed cutting all Continuum of Care funding.
What critics are saying
Critics say the administration’s efforts could quickly place 170,000 formerly homeless people back on the streets.
Some argue that the new policy could have severe repercussions, particularly for those with children at home or who are unable to work due to a reason that the government does not recognize as an exemption.
