Philadelphia Supportive Housing Providers Brace for 'Misguided' Loss of Tens of Million in Federal Funds

A shift in focus from ‘Housing First’ policies to more restrictive approaches to homelessness could eliminate funding for long-term housing providers.

1 minute read

November 27, 2025, 6:00 AM PST

By Diana Ionescu @aworkoffiction


Front entrance of Gloria Casarez Residence supportive housing facility in Phialdelphia, Pennsylvania.

Project HOME / Gloria Casarez Residence

Philadelphia affordable housing providers are bracing for federal funding cuts that could amount to tens of millions in lost dollars for permanent and long-term supportive housing services.

As Alfred Lubrano explains in Governing, the U.S. Department of Housing and Urban Development’s new housing plan says it will “restore accountability” by addressing the “root causes of homelessness” through work requirements and other restrictions on housing assistance. 

Nationwide, advocates say, the HUD plan could displace 170,000 people by cutting two-thirds of the aid designated for permanent housing.

In Philadelphia, a local nonprofit estimates around 1,200 housing units could lose federal aid. “In its plan, HUD will require the local planning bodies to compete for funding, and will attach ideological preconditions that could affect how much money a community like Philadelphia receives.”  HUD’s new approach rejects Housing First, an increasingly popular approach to homelessness that aims to get people into housing without prerequisites before mandating drug treatment or other requirements.

Tuesday, November 25, 2025 in Governing

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