Temporary Halt on Federal Housing Grant Overhaul Amid Legal Challenges
The Trump administration has taken a step back from its proposed changes to federal housing grant allocations. This decision comes in the wake of numerous lawsuits filed by state officials, municipalities, and nonprofit organizations.
This pause in action follows urgent warnings from East Valley leaders who highlighted the lack of alternatives to replace federal funding for housing shelters. They expressed concern that approximately 1,400 housing units for the formerly homeless in Maricopa County would be jeopardized if the Department of Housing and Urban Development (HUD) were to limit funding for “permanent supportive housing” within the Continuum of Care Program.
Permanent supportive housing combines accommodation with supportive services such as substance abuse treatment. A study conducted in 2020 indicated that this model is more effective in preventing homelessness compared to other approaches.
Maricopa County was facing a potential $32 million reduction in funding. HUD has stated that the “housing first” approach, which provides housing without prerequisites and offers additional services post-placement, is a “failed ideology” that fosters reliance on government aid without addressing underlying issues of homelessness (HUD statement).
Democratic Congressman Greg Stanton from Arizona challenged HUD’s view, insisting that there is substantial proof that the Continuum of Care’s supportive housing effectively reduces homelessness. He criticized the Trump administration for choosing “ideology over evidence” and “disruption over sustainability,” which adversely affects low-income populations.
“That’s not just numbers on a spreadsheet,” Stanton remarked at a recent press conference. “That’s almost 1,400 families, veterans, domestic violence survivors, and individuals with disabilities who will lose their homes, who will be back on the streets as a result of this policy change.”
Charles Sullivan, President and CEO of the Arizona Behavioral Health Corporation, asserted that the proposed funding limit would only exacerbate homelessness. He commented, “Imagine losing your housing of 30 years, not of any fault of your own, but on the whims of bureaucrats who, in their own words, just want to ‘try something different this year.’”
Tempe’s Vice Mayor, Doreen Garlid, highlighted the impact on municipalities, noting that displaced individuals often end up in emergency services, increasing strain on city resources. Mayor Corey Woods of Tempe emphasized that their budget is planned years in advance, making mid-year funding cuts difficult to manage without considering tax increases, which are currently not being pursued.
Amy St. Peter, Director of Community Initiatives at the Maricopa Association of Governments, pointed out that shelters nationwide are already operating at full capacity. Meanwhile, Arizona’s Attorney General Kris Mayes, along with other state officials, continues to challenge the funding cuts through legal action.
Despite the temporary pause, HUD’s Continuum of Care website indicates that changes to the program are still under consideration.
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