Key facts
- A federal judge has struck down a policy shift by the Department of Housing and Urban Development (HUD) away from the "housing first" approach to homelessness.
- HUD had announced plans to prioritize temporary housing and services over permanent housing.
- The agency argued that the "housing first" policy has failed and that its new approach aims for recovery and self-sufficiency.
- The judge ruled that HUD's actions to eliminate the housing first approach were "unreasoned decision making."
- HUD intends to award $4.04 billion in funding for its Continuum of Care Program in 2026 based on merit and outcomes.
A federal judge has blocked the Department of Housing and Urban Development's (HUD) recent shift away from its long-standing "housing first" policy for addressing homelessness. The "housing first" approach prioritizes providing permanent housing to individuals experiencing homelessness.
In response to the ruling, a HUD spokesperson stated that the agency "fully stands by our objective to overhaul America’s failed homelessness system," which they claim has been an "exorbitant taxpayer cost" without addressing root causes. The spokesperson added, "The data is clear: Housing First has failed. HUD is making a paradigm shift towards recovery and self-sufficiency."
Judge McElroy's decision indicated that HUD's "hasty" elimination of the housing first approach for its fiscal 2025 program funding demonstrated "unreasoned decision making." HUD had announced in June that it would continue to limit resources for permanent housing, instead focusing on temporary housing and services when awarding the $4.04 billion appropriated for its Continuum of Care Program in 2026.
In June, Secretary Turner told reporters that the notice of funding opportunity "reflects a fundamental shift in how HUD evaluates success and allocates funding." He stated, "We will fund projects based on merit and outcomes, not warehousing the homeless and government dependent. We will define success by how many Americans achieve self-sufficiency, not by dollars spent or units built." The HUD spokesperson further commented that the agency's changes are "opening the doors to competition and a balance of approaches, so we fund results, not just the status quo."