Trump Administration Dramatically Overhauls Federal Funding for Homeless Services

The U.S. Department of Housing and Urban Development is pushing forward with controversial plans to overhaul federal homelessness assistance programs.

HUD released a new $4 billion Notice of Funding Opportunity on Monday. This allows organizations to apply for grant funding to support homelessness programs. In it, HUD emphasized strategies favored by President Donald Trump's administration to address homelessness.

HUD Secretary Scott Turner has been a vocal critic of "housing first" programs, which aim to help get homeless people into housing without strings attached. Turner instead argued that supportive services are also necessary. And so, HUD's preferred strategy will "promote a communitywide commitment to the goal of ending homelessness," HUD said in the document.

"This ideology promised to end homelessness," Turner said in a statement with the new NOFO. "Instead, billions of taxpayer dollars were spent while homelessness increased to record levels. Housing alone will not solve a crisis driven by addiction and mental illness."

HUD signaled a departure from "housing first" when it released a NOFO last year that resulted in legal action. That NOFO was ultimately blocked in court following a lawsuit from the National Homelessness Law Center, which also vowed to challenge the new funding plan.

Shift away from housing with no strings attached

HUD has openly signaled its preference to shift away from the "housing first" model. Some of those programs were favored in the Obama and Biden administrations.

The agency's latest count of homelessness faulted "housing first" programs, arguing homelessness increased despite an increase in funding for homelessness programs.

The agency under Turner has aimed to slash some major housing programs, submitting a fiscal year 2027 budget proposal that cut 13% of its budget, with broad cuts in several programs.

So, the new NOFO takes aim at providing services that address addiction treatment and recovery. HUD says it is more competitive than versions in the past, while also tying program funding to performance.

"The status quo perpetuates addiction in taxpayer-funded homelessness assistance programs in violation of federal law," HUD said in a statement.

Local governments, nonprofit agencies, and other community groups are able to apply for grants of up to $25 million. Awards would be due by Dec. 1.

"Our team is currently reviewing the notice, and we look forward to sharing insights in the coming days," nonprofit advocacy group National Alliance to End Homelessness said in a statement.