Feds Announce HUD Policy Cuts to Permanent Homeless Housing

Last week, the US Department of Housing and Urban Development (HUD) released policy changes that will significantly cut funding for permanent housing programs for people experiencing homelessness.

The goal of the programmatic cuts to long-term housing is to focus on illicit drug use and mental illness, but Care Providers remain concerned that the changes could put 170,000 people at risk of losing their current housing, leaving programs around the country with little time to shift applications or housing projects to the newly proposed transitional funding.

More than half of the 2026 funding for HUD’s Continuum of Care program, which partners with local organizations to connect people experiencing homelessness to housing and resources, will be cut for permanent housing assistance and moved to transitional housing assistance with work or treatment requirements for care. 

With November being National Homelessness Awareness Month, HomeAid is concerned that the funding shift reduces the amount of federal funds a city or county can spend on permanent housing from 87% to a maximum of 30%.  Redirecting funding to temporary shelters with work mandates and addiction treatment could actually negatively impact vulnerable populations that are currently housed, increasing those living on the street.

For more information on proposed HUD policy changes, please click here or contact Crisand Giles for more information.