Trump Administration's Policy Shift Creates Turmoil for Homelessness Programs

Federal policy shifts under the Trump administration are creating significant upheaval for homelessness programs across the United States, moving away from the long-standing 'Housing First' approach. This change, which favors a 'Treatment First' model and short-term transitional housing, is causing concern among providers and advocates who fear it will push vulnerable individuals back onto the streets or prevent them from finding stable accommodation.

The 'Housing First' model, which has been central to federal policy since 2013, operates on the principle that individuals need a stable home before they can effectively address other issues such as health, mental illness, or substance use disorders. This approach has been credited with providing long-term stability for many, including those with chronic health conditions and disabilities.

Under the new direction, proposed budgets suggest eliminating key federal initiatives that support 'Housing First' programs, such as the $4 billion Continuum of Care program. Instead, the administration favors housing solutions lasting up to two years, during which treatment would be mandatory. The Department of Housing and Urban Development (HUD) stated that 'Housing First has failed our most vulnerable and enabled addiction,' and that proposed reforms aim to 'advance recovery, self-sufficiency, and competition that drives accountability.'

However, service providers argue that the majority of chronically homeless individuals require more than two years to achieve stability. They express concerns that without permanent supportive housing, many will revert to homelessness. "If you want to gradually work on reducing social services that are funded by the federal government, OK," said Jennifer Clark, CEO and executive director of St. Vincent de Paul Louisville. "But you cannot make a huge sweeping change and big cuts and take an ax to everything and think that there aren’t going to be consequences for some people who are really in need."

Examples of the disruption are emerging nationwide. Planned housing projects have been canceled in places like Corbin, Kentucky. In Santa Cruz County, California, and Louisville, nonprofits are re-evaluating their strategies, with some considering converting permanent housing units into temporary ones to comply with funding requirements. This comes as the number of homeless individuals in the U.S. has seen an increase. Last year, nearly 750,000 people were estimated to be homeless, a figure up 31% from 2019. The population experiencing chronic homelessness, defined by having a disability and long-term or repeated episodes of homelessness, has also risen.

Research indicates that roughly half of homeless adults live with a disability, and significant portions experience mental illness or substance use disorders. These individuals often have higher rates of chronic health conditions like heart disease and diabetes compared to the general population. For people like Johnny Henderson, a 71-year-old with multiple health issues who has been sleeping on the street, the shift is particularly alarming. "I’m going to die sleeping outdoors," he said. "But I got nowhere to go."

Legal challenges have also arisen. A coalition of local governments and advocates sued HUD over its attempt to rework homelessness grants to align with the administration's favored policies. While a federal judge initially sided with the plaintiffs, an appeals court recently ruled that the administration could proceed with its changes.

The uncertainty has left many organizations scrambling. "It’s like psychological warfare the last two years, trying to figure out how to navigate these changes that are looming right over us," said Ra’Shann Martin, executive director of the St. John Center men’s day shelter in Louisville.

Advocates like Devon Kurtz, director of public safety policy for the Cicero Institute, believe that mandatory services for addiction and mental health are crucial and that 'Housing First' sometimes overlooks this necessity. However, many providers maintain that the stability provided by permanent housing is the essential first step for individuals with complex needs to begin recovery and address their health challenges.