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


Brutalist grey department of housing and urban development building in Washington DC.

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

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

November 11, 2026 - Zachary Whalen

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

November 6, 2026 - Grist

People walking in downtown St. Louis, walking past shops.

Move over, LA: St. Louis gears up for Olympics, invests millions in downtown redevelopment

The Missouri city will host the 2028 Olympic soccer group stage and knockout matches.

November 1, 2026 - Smart Cities Dive

Construction in Dallas. An aerial shot of a wooden frame of an apartment building.

Dallas releases zoning code overhaul to officials

The drafted overhaul is over 400 pages long.

November 11 - Dallas Morning News

Canal street, where pedestrians are packed shoulder to shoulder.

NYC renovations for dangerous, ‘mercilessly crammed’ street delayed until 2027

Construction was supposed to begin this fall.

November 11 - Gothamist

A rendering of Midway Rising that shows people mingling in a green space between apartment buildings.

San Diego’s Midway Rising project gets greenlight from city council

The project looks to become the largest affordable housing development in California's history.

November 11 - KPBS

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.