Trump Administration Announces New Focus on Homelessness Recovery
In a significant policy shift on Monday, the Trump administration unveiled plans to allocate billions toward programs aimed at combating homelessness and promoting self-sufficiency.
The Department of Housing and Urban Development (HUD) revealed a new $4.04 billion Notice of Funding Opportunity (NOFO) for its Continuum of Care (CoC) program directed at the homeless population. HUD Secretary Scott Turner criticized previous “housing first” strategies for not effectively addressing the ongoing homelessness crisis. A recent annual assessment noted that while taxpayer-funded beds have surged by 151% from 2013 to 2025, homelessness only saw a 27% increase, with a slight 3% decrease from 2024 to 2025.
Turner stated, “The status quo on homelessness is not working. It’s unacceptable for so many Americans to be sleeping on the streets, battling issues like drug addiction and mental illness, often trapped in a cycle that current federal policies do not resolve.”
The new framework emphasizes funding for transitional housing assistance and a variety of support services including street outreach, job training, addiction treatment, and childcare. According to an April 30 press release, there will be a focus on collaborating with faith-based organizations, law enforcement, and other groups to tackle homelessness effectively. HUD has also proposed $1.3 billion for new projects, concentrating on temporary housing and supportive programs.
In a related comment, a HUD expert noted, “Faith-based providers have been aiding the homeless for years, even before federal initiatives. Under the previously promoted Housing First model, these groups were often excluded from significant roles as they sought the accountability we now advocate.”
Turner has indicated plans to root out fraud within HUD, highlighting potential payment errors amounting to $5 billion and concerns about illegal immigrants receiving taxpayer-funded housing.
The funding competition for the 2026 CoC program is set to start immediately, with announcements of recipients expected by December 1st.
In contrast, the previous administration under Joe Biden focused on a “housing first” approach, aiming to boost housing supply with supportive services and strategies to prevent homelessness.
The latest Homeless Assessment reports showed 745,652 individuals were homeless overnight in January 2025, marking a 3% drop from the previous year, largely attributed to a decrease in emergency shelter usage. The number of homeless individuals had been identified as 771,480 in 2024, with past figures showing 653,104 in 2023 and 582,462 in 2022.
HUD’s recent steps are part of a broader initiative to intertwine homelessness policy with addiction treatment and recovery efforts.
In April, the White House hosted a summit where federal officials and addiction treatment specialists gathered to discuss innovative methods for addressing substance abuse among the homeless population, featuring key officials like the Secretary of Health and Human Services and HUD Assistant Secretary.
