The 2026 budget proposal from the Trump administration threatens substantial cuts to the Department of Housing and Urban Development, impacting thousands of formerly homeless individuals with disabilities. It eliminates the $3.7 billion Continuum of Care initiative essential for local homelessness services and shifts funding from permanent supportive housing to short-term solutions. This policy change moves away from the successful Housing First model, which provides stable housing without preconditions, raising concerns that it will increase overall homelessness and burden local communities with higher emergency intervention costs.
The Trump administration's 2026 budget proposal threatens to drastically cut funding for the Department of Housing and Urban Development, endangering the stability of thousands of formerly homeless individuals with disabilities.
The proposed budget cuts nearly $33 billion from HUD, eliminating the $3.7 billion Continuum of Care initiative, which funds local homelessness services.
Housing First has been praised for its effectiveness in reducing homelessness. Critics argue that the new approach, requiring individuals to address personal issues before receiving long-term housing, could keep people on the streets for longer.
Local advocates warn that the financial burden of increased street homelessness will fall on local communities, with higher costs for emergency interventions.
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