How Trump's HUD Budget Proposal Would Harm Homelessness Response

Experts say the change to the HUD budget would make it more difficult to identify people who are homeless and connect them with services, and to prevent homelessness.

1 minute read

July 9, 2025, 10:00 AM PDT

By Shelterforce


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Photo: Kjetil ReeArchitect: Marcel Breuer, CC BY-SA 2.5, via Wikimedia Commons / Wikimedia Commons

The article explores the far-reaching consequences of President Trump’s proposed FY 2026 budget, which seeks to consolidate three major homeless assistance programs—Continuum of Care grants, Housing Opportunities for Persons With AIDS (HOPWA), and the Emergency Solutions Grant (ESG)—into a single block grant. This move would eliminate specialized housing and services for vulnerable populations like people with HIV/AIDS and those with chronic mental illness.

Experts warn that the restructuring would dismantle the country’s coordinated homeless response system, cut more than $500 million in critical funding, and impose a two-year cap on assistance. Overall, the changes in the budget risk leaving over 275,000 people without housing. Programs like Denver’s Beacon Place and initiatives in Atlanta and Boston, which rely on continuum of care funding, could be severely impacted.

Critics—including leaders from the National Alliance to End Homelessness, Metro Denver Homeless Initiative, and the National Low Income Housing Coalition—say the proposal would ultimately increase homelessness rather than reduce it.

Friday, June 27, 2025 in Shelterforce Magazine

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