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Federal policy shift targets funding for housing programs

12/03/2025 by Hawaii Catholic Herald

By Kurt Jensen

OSV News

WASHINGTON — The Trump administration has issued plans for a complete turnaround in homelessness policy, which involves a two-thirds reduction in current funding used to place people experiencing homelessness in permanent dwellings.

Nationally, it could make as many as 170,000 people — all either disabled, suffering from drug addiction, mental health issues, or otherwise “unable to pay the rent” — vulnerable to losing housing and being back on the streets, Brian Corbin, executive vice president of member services at Catholic Charities USA, told OSV News.

The statistic came from internal Housing and Urban Development documents obtained by Politico, which first reported the development Sept. 29. The policy shift moves billions of dollars to short-term transitional housing programs that impose work rules, help police dismantle tent encampments and require people experiencing homelessness to accept treatment for mental illness or addiction.

The Department of Housing and Urban Development detailed the changes in a 128-page notice issued Nov. 13. It involves more than $3.9 billion in what are called Continuum of Care funds, and could affect people utilizing these services as soon as January.

“These are pretty substantial reductions,” Corbin said. “That’s where the flashpoint is.”

The “Housing First” approach taken by the federal government up to now has also drawn criticism over its effectiveness.

The major change in federal policy on homelessness and its potential impact on the people Catholic Charities agencies serve was among the issues discussed at a summit of Catholic Charities’ leaders and local politicians on Nov. 18.

Also discussed was the use of surplus church properties such as schools and hospitals to convert to emergency housing, an idea that’s been in the works for more than a decade.

The 168 diocesan agencies within the Catholic Charities USA network supervise 38,000 housing units, Corbin said.

The consensus of most speakers was that homelessness would be best addressed through cooperation with local governments and CCUSA member agencies sharing ideas.

Filed Under: OSV News Tagged With: 'Housing First', Catholic Charities USA, housing, people experiencing homelessness

Catholic News Service

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