The Trump administration is planning to reduce funding for programs that help provide permanent housing for the homeless, which may push those they aim to assist back onto the streets, according to a recent report.
On Monday, Politico referenced insights from three employees within the Department of Housing and Urban Development (HUD), along with internal documents and others knowledgeable about the Continuum of Care (COC) program. This move could put more than half of the HUD’s funding for permanent housing at risk.
Internal sources indicate that the funds being cut will instead be allocated to transitional housing assistance that could come with certain work or service requirements. This change is expected to heavily impact rural regions that often lack the necessary urban and state funding to make up for lost federal support.
“When the subsidies and support tied to those grants are taken away, people are going to be in significant danger,” said one source familiar with the COC program. “Most of those who lose this support will end up back in emergency shelters or out on the streets.”
Earlier this month, HUD Secretary Scott Turner expressed his views in an opinion piece, outlining a significant shift in the department’s strategy regarding homelessness and housing.
Turner emphasized that the aim is for HUD to implement effective, evidence-based strategies, arguing that offering free housing to the homeless—without any requirements such as vocational training or treatment—does not lead to positive results.
He commented on the failures of past strategies, hinting that many lives have been adversely affected by HUD-funded housing approaches and drug overdoses.
Turner reiterated the importance of continuing to provide support aimed at helping those facing homelessness gain independence and overcome addiction challenges.
According to Politico, funding for permanent housing in 2026 is currently set at $3.3 billion, but there are concerns that this could be slashed to as low as $1.1 billion due to the Trump administration’s funding initiatives.
