In a recent decision, the US Appeals Court for the First Circuit rejected a proposal from the Trump administration aimed at altering the allocation of federal homelessness funds. This initiative sought to divert millions of dollars from the Continuum of Care (CoC) program—known for its “Housing First” approach—to transitional programs emphasizing sobriety and mental health treatment. The court’s ruling has upheld the lower court’s decision, refusing a request for a stay pending appeal by the Department of Housing and Urban Development (HUD).
The CoC program, operational since 2009, has distributed over $4 billion across various states and local entities, prioritizing stable housing over preconditions such as sobriety or mental health examinations. Integral to this program are services for particularly vulnerable groups, including children, the elderly, and survivors of domestic violence. The ruling indicates that implementing the proposed changes would be “immediately destabilizing” for the people relying on these services.
HUD’s proposal was met with legal opposition from several states, which successfully argued that such a shift could push approximately 170,000 people back into homelessness. HUD’s position, as outlined by Secretary Scott Turner, critiques the “Housing First” model for allegedly supporting a “homeless industrial complex” without truly addressing underlying issues. However, these changes have been halted by the recent court finding, preserving the status quo and allowing the CoC program to continue its current operations.
The decision has left the future of the proposal uncertain, as HUD has yet to decide on an appeal. This legal battle brings to the forefront the ongoing debate about the best way to tackle homelessness in the United States, with contrasting views on whether housing should be the primary foundation for rehabilitation or whether structured transitional programs better serve this purpose.