Proposed HUD Shifts Would Gut Permanent Supportive Housing and Disrupt Programs Keeping Nearly 2,000 People off the Streets
Shifts in federal funding could cause a significant spike in evictions and homelessness in southern Nevada, advocates warn.
President Donald Trump’s administration proposed sweeping changes to the Department of Housing and Urban Development’s Continuum of Care grant program last year, which many experts said would cause homelessness to rise. The changes included limiting the amount of money that can be spent on evidence-based solutions like Permanent Supportive Housing, prohibiting grantees from practicing Housing First, and prioritizing funding applications from faith-based organizations.
Experts estimate that 170,000 people nationwide would lose their homes if the changes were made permanent.
A federal judge in Rhode Island temporarily blocked the changes, arguing that the “chaos seems to be the point.” Even though HUD has withdrawn the proposed changes, uncertainty remains for many advocates and homeless service providers.
“With homelessness in Nevada at its highest level since the Great Recession and a significant housing shortage throughout the state, making housing even less affordable, Nevadans rely on CoC-funded services now more than ever,” Nevada’s Congressional delegation wrote in a letter to HUD Secretary Scott Turner. “To avoid these consequences, we strongly urge HUD to continue or preserve existing CoC grants for FY 2025 and provide stability for the proven homelessness assistance programs that communities in Nevada and across the country rely on.”
How Federal Rules Threaten Housing for Nearly 2,000 People
The potential changes will affect how homeless service providers help people in need. Advocates in southern Nevada also warned that they would be devastating for people who are homeless.
For instance, The Las Vegas Sun reported that 87% of all Continuum of Care grants Nevada receives go toward paying for Permanent Supportive Housing. Federal data shows a majority of these funds are issued on a renewal basis, meaning they go toward keeping existing PSH properties open.
The proposed changes to PSH funding would also significantly disrupt the system that is keeping people off the streets. The Help Home CoC distributes about $25 million annually to support service providers in Clark County, Nevada, according to the Sun. The proposed rules say Help Home CoC can only spent 30% of its total award on PSH projects, meaning about $12 million of the roughly $17 million currently going toward PSJ projects would need to be redirected.
Federal data shows there are roughly 9,000 PSH beds in southern Nevada, of which 22% are funded by CoC grants. That means nearly 2,000 people would be at immediate risk of losing their homes if HUD’s changes become permanent.
Why Changes to the Grant Cycle Could Create Dangerous Gaps in Service
Another proposed change that Nevada advocates warn would be devastating to people who are homeless is HUD’s idea to abandon the two-year cycle for CoC funding. Advocates told The Sun that they are concerned the change would delay awards that have already been approved, and may create a gap in services that force people out of their homes.
Moving away from the two-year grant cycle would also be a significant burden on service providers themselves. In effect, it would bog down their jobs with grant paperwork, leaving them less time and capacity to provide services to the people they help.
These changes are also being proposed at a time when homelessness is surging across southern Nevada. The latest Point in Time Count found more than 7,600 people experiencing homelessness in the region, an increase of 20% from the previous count.
National Advocates Warn the Impact Would Be Felt Far Beyond Nevada
Advocates across the country are singing the same tune about the proposed CoC changes. The proposed rules could cause housing, family support, and mental health programs to shutter nationwide.
“HUD’s decision to massively cut funding for proven solutions to homelessness and further delay much-needed funding comes at truly the worst moment for people suffering under the strain of a housing crisis,” Shaun Donovan, CEO of Enterprise Community Partners, told Invisible People in a statement.
“Homelessness is at record levels nationwide, and rather than investing in solutions that work, the administration is taking this moment to imperil the futures of hundreds of thousands and put added pressure on local communities and economies,” he added.
Ann Oliva, CEO of the National Alliance to End Homelessness, described the proposed changes as a “betrayal of HUD’s mission.”
“This is an indefensible betrayal of HUD’s mission,” said Oliva. “Instead of helping communities end homelessness, HUD is actively fueling its growth with these decisions. As a former senior HUD staffer, I can honestly say that I don’t know what HUD is doing, and I don’t think they do either.”
Why We Must Act: Housing Is a Human Right
Now is not the time to be silent about homelessness in the United States or anywhere else. Unhoused people deserve safe and sanitary housing just as much as those who can afford rent or a mortgage.
Poverty and homelessness are both policy choices, not personal failures. That’s why we need you to contact your officials and tell them you support legislation that:
- Streamlines the development of affordable housing
- Reduces barriers for people experiencing homelessness to enter permanent housing
- Bolsters government response to homelessness
Together, we can end homelessness.