HUD TRIES, AGAIN, TO MOVE FEDERAL HOMELESSNESS FUNDING AWAY FROM PERMANENT HOUSING THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) released its new guidelines for the largest pool of federal homelessness funding, the Continuum of Care (CoC) grant, on 1 June. The agency had attempted to implement a different set of guidelines last year but was temporarily blocked following a lawsuit. Despite rolling back some of its more stringent restrictions in this most recent set of rules, HUD remains skeptical of Housing First programs. The guidelines could put some programs applying for grants in a difficult position and potentially change the nation’s homelessness services landscape. Last November, when HUD released its updated fiscal year 2025 funding application for the CoC, a federal program that provides funding for nonprofits working to end homelessness, programs found themselves facing an unprecedented level of funding constraints. HUD planned to cap the amount of funding that localities could receive for Permanent Supportive Housing (PSH) to just 30% of their total funding, effectively moving a large portion of the program’s $3.9 billion budget towards transitional housing and programs prioritizing work requirements and mandatory treatment. This shift would have potentially forced 1,500 people out of housing and cost DC housing programs approximately $22 million, according to advocacy group the National Alliance to End Homelessness (NAEH). Those guidelines were blocked by the courts. Now, HUD’s new guidelines remove the cap on PSH, but instill other limitations that would shift money away from permanent housing, setting aside $1.3 billion solely for temporary and supportive programs. WHAT’S THE DEBATE? Both sets of funding guidelines reflect the Trump Story by Alexandra Lalli administration’s dislike of Housing First programs, long considered a bipartisan, mainstream response to homelessness. Housing First is an approach to the homelessness crisis that prioritizes providing people with permanent, stable housing Washington DC. | Photo by Andy Feliciotti 4 NEWS
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