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Trump Shifts Federal Homelessness Policy Away From Housing First

Federal officials are steering grants toward temporary housing and required treatment as nearly 750,000 people were homeless last year, HUD said.

  • President Donald Trump's administration is shifting federal policy and dollars away from Housing First programs toward temporary housing models that limit stays to two years while requiring mandatory service completion.
  • Across America, nearly 750,000 people were homeless last year, up 31% since 2019, as the administration argues Treatment First models mandating addiction and mental health services are more effective than Housing First approaches.
  • Trump's proposed budget would eliminate the $4 billion Continuum of Care program, which funded 6,500 projects in 2024, when 60% supported permanent supportive housing and just 1% went to transitional housing.
  • An appeals court ruled this month that the administration could move ahead awarding grants, following a lawsuit filed by local governments and advocates against the U.S. Department of Housing and Urban Development.
  • In Corbin, Kentucky, and Santa Cruz County, California, planned housing projects have been scrapped as nonprofits fear the shift will harm vulnerable individuals by returning them to streets or keeping them there.
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abc News broke the news in New York, United States on Wednesday, September 30, 2026.
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