- The Trump administration’s proposed 2025 budget would cut $532M from the US Department of Housing and Urban Development’s (HUD) homelessness programs.
- Over 166,000 units of permanent supportive housing could lose funding, disrupting placements for more than 218,000 people.
- The Continuum of Care Program, a major federal funding source, is at risk of elimination.
- States like Louisiana, Missouri, Ohio, and Maine, where over 70% of beds rely on federal funding, would be hit hardest.
A Critical Funding Cliff
According to Bisnow, president Trump’s 2025 budget proposal includes HUD cuts totaling $532M to homelessness assistance programs. Housing advocates warn this could undo years of progress in housing stability. A major concern is the Continuum of Care Program, which helps communities compete for federal homelessness funding.
Impact at Scale
The National Alliance to End Homelessness estimates the cuts would end funding for over 166,000 permanent supportive housing units. These homes include not only rent assistance but also access to health and social services. About 218,000 people who were previously homeless could lose housing as a result.
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Disproportionate Blow to Key States
The proposed cuts would hit hardest in states that rely most on federal dollars. In Louisiana, Missouri, Ohio, and Maine, more than 70% of permanent supportive housing beds are funded through the Continuum of Care. If the program is cut, many communities would lose a major share of their housing support..
More Than Homeless Programs at Risk
The HUD cuts also target Section 8 and other rental aid programs. These are essential to low-income renters and the landlords who house them. Some property owners say they are already short on funds as they wait to learn whether the programs will survive.
Why It Matters
“This proposal represents the single greatest retreat from the federal government’s responsibility to end homelessness since the McKinney-Vento Act,” said Ann Oliva, CEO of the National Alliance to End Homelessness. The 1987 law marked the federal government’s first coordinated response to homelessness.
What’s Next
Homelessness reached record highs in 2023 and 2024. Advocates fear that pulling back now could trigger a major crisis. With many cities still struggling to meet demand, federal cuts would leave thousands without support. Housing groups are urging Congress to restore the funding before it’s too late.
