Full Breakdown
Trump Administration Cuts Funding for Permanent Housing Program
11/16/2025, 3:23:00 PM
Significant Changes to the Continuum of Care Program
The Trump administration has announced substantial changes to the Continuum of Care (CoC) program, which provides funding for housing support to individuals experiencing homelessness. The Department of Housing and Urban Development (HUD) revealed that over half of the 2026 funding will be redirected from permanent housing assistance to transitional housing, which includes work and service requirements. This shift is expected to impact approximately 170,000 individuals, potentially putting them at risk of homelessness, according to internal HUD documentation.
The new funding structure will limit permanent housing projects to 30% of the total CoC budget, approximately $1.2 billion, down from 87% in previous years. The application process for the next grant cycle is set to close on January 14, 2026, just two weeks before Congress must finalize HUD's funding levels. This timeline raises concerns that many existing projects may run out of funds during the coldest months of the year, leaving vulnerable populations without support.
Official Statements & Responses
HUD Secretary Scott Turner defended the changes, stating that the new policy aims to "restore accountability" and promote self-sufficiency among those receiving assistance. He criticized the previous administration's approach, claiming it perpetuated a "failed 'Housing First' ideology" that neglected the root causes of homelessness, such as mental illness and substance abuse. Turner emphasized the need for a competitive process to determine the most effective programs, arguing that the previous system lacked accountability.
In contrast, 42 Senate Democrats, including Patty Murray (D-Wash.) and Elizabeth Warren (D-Mass.), sent a letter to Turner urging him to reconsider the policy changes. They argued that the cuts could contravene the McKinney-Vento Homeless Assistance Act and undermine local decision-making authority. The letter highlighted the potential for increased homelessness among vulnerable populations, including the elderly and individuals with disabilities.
Criticism & Opposition
Homelessness advocates have expressed grave concerns regarding the funding cuts. Ann Oliva, CEO of the National Alliance to End Homelessness, stated that the new funding priorities would "slam the door" on individuals who have begun to stabilize in permanent housing programs. She warned that the changes could lead to a significant increase in homelessness across the nation.
Additionally, a group of 20 House Republicans, led by Andrew Garbarino (R-N.Y.) and Nick LaLota (R-N.Y.), also urged the administration to renew existing grants for another year to prevent disruptions in services for individuals with severe disabilities and chronic health conditions.
Conflicting Reports & Gaps
There is a discrepancy in the estimated number of individuals at risk due to the funding cuts. While HUD documentation suggests around 170,000 people could be affected, some reports indicate that nearly 200,000 individuals, including older adults and veterans, may face homelessness as a result of the changes.
Verbatim Quotes
- “It’s terrible policy and really irresponsible administration of the program,” — Ann Oliva, CEO of the National Alliance to End Homelessness
- “The narrative out there is, ‘Oh, if you “pull funding” then there's going to be more elderly people on the streets.” — Scott Turner, HUD Secretary
- “HUD’s new funding priorities slam the door on them, their providers, and their communities.” — Ann Oliva, CEO of the National Alliance to End Homelessness
- “Senate Democrats are doing the bidding of the homeless industrial complex.” — HUD spokesperson
The changes to the CoC program are set to take effect amid ongoing debates about the best strategies to address homelessness in the United States.
