The Trump administration is poised to make cuts to some housing programs, and advocates — including a mix of Republican lawmakers — are warning that could cause a surge in homelessness.
Programs aimed at transitioning people from homelessness into permanent housing are set to lose critical funding under new guidelines from the Department of Housing and Urban Development, which the Trump administration plans to have in effect by January. Housing advocates warn that 170,000 people could be pushed back into homelessness in 2026.
Earlier this month, HUD released its notice of funding opportunity, a document outlining how to qualify for federal funding under these programs. The guidelines came two months later than they typically do and were far more stringent. The notice caps HUD’s spending on supportive housing at 30% of its “overall funding,” compared to 90% in 2024, according to the National Alliance to End Homelessness’ review.
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But even before HUD released its guidelines, some Republican lawmakers argued the Trump administration should extend the existing structure.
“We share the administration’s goal of improving housing affordability, but reforms must be implemented in a measured and targeted way that minimizes disruption for those most vulnerable,” Rep. Don Bacon said in a statement. “Extending under a two-year [notice of funding opportunity] cycle as Congress intended would allow HUD to thoroughly review housing reforms and ensure families are protected rather than putting them at risk.”
A spokesperson for HUD said in a statement to NOTUS on Wednesday, after publication of this article, that the agency “refutes any claim or assertion that reforms will result in increased homelessness.”
The spokesperson added that Republican lawmakers “support HUD’s results-oriented approach.”
The department also said the delay in notice was caused by the government shutdown.
Nearly two-dozen Republican legislators urged HUD in a letter ahead of the notice to renew all existing grants under the Continuum of Care Program that are set to expire early next year because of the changes the administration is implementing. Continuums of Care are local and regional planning bodies that oversee an array of programs managing homelessness in states.
“Renewing these Continuum of Care grants is essential to keeping vital support in place for our most vulnerable while we work toward long-term solutions, and I look forward to continuing to partner with HUD to reduce homelessness and keep families housed,” Rep. David Valadao, a Republican from California, told NOTUS in a statement after the notice’s announcement.
Some of the lawmakers who signed the letter pointed to the need to maintain stability in homelessness programs in their thinking for why they decided to push against the delayed notice.
“Rep. Bresnahan signed onto the letter because homelessness impacts all districts and does not discriminate based on race, gender, age, or zip code,” said Hannah Pope, a spokesperson for Rep. Rob Bresnahan, in a statement to NOTUS. “He is particularly mindful, as the country continues to address affordability, that many families are one paycheck away from living on the streets.”
Policy experts say the timing of the notice adds further strain in distributing the funding.
Peggy Bailey, the executive vice president for policy and program development at the Center on Budget and Policy Priorities, told NOTUS that the late announcement with the expectation that the changes be in effect by January will inevitably create delays and disruptions to service providers.
“This funding notice should have come out last summer, this past summer, because HUD needs about six months to be able to have people apply for the dollars, then review all the applications, and then distribute the resources,” Bailey said.
At the moment, there isn’t much momentum on Capitol Hill to address the funding cuts to the programs. One of the top lawmakers focused on housing said he’d be open to examining the issue — just not this year.
“We’ve made a conscious effort this year to focus on home affordability, where in the past, this committee has really surrounded itself with public housing. We are going to dive into that in 2026 and unpack some of these issues,” Rep. Mike Flood, a member of the House Financial Services Committee, said at a press conference last week in response to a question from NOTUS about the upcoming changes. “It’s something our committee hasn’t tackled this year.”
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Editor’s Note: This story has been updated with additional reporting.
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