A recent change to funding policy could cause 170,000 people across the country and 21,000 in Illinois to lose housing. Directed by the Trump administration through the Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) Program, the change will take funding away from programs that use evidence-based, housing-first, permanent supportive housing models for people who are formerly homeless – the vast majority of housing funded nationally by the CoC project. Instead, the Trump administration will prioritize short-term housing programs with mandatory substance use treatment, mandatory mental health treatment, and work requirements. This policy change will directly affect people who are formerly homeless and disabled – including people living with HIV – who are living in CoC-funded permanent housing programs and could lose their homes.
At AIDS Foundation Chicago and our subsidiary Center for Housing and Health, CoC funding supports housing for 721 people and accounts for $13.9M in revenue for the two organizations. Stable housing for these participants is at risk because of the Trump administration’s proposed policy.
The HUD notice was issued months after the normal CoC funding cycle concluded and represents a major shift away from proven housing programs and toward incarceration for people experiencing chronic homelessness, addiction, and mental illness. According to the notice, some of the new funding policies include: support of housing-first programs will be capped at 30% of CoC fund recipients; essential harm reduction work – like syringe exchange or safer use spaces – would not be permitted; and all funded organizations must only consider gender as binary. In addition to the cap on funds for proven permanent supportive housing programs, the funding notice also implements a scoring system that prioritizes funding for states and localities that criminalize homelessness, deny housing to immigrants, and eschew diversity and equity initiatives.
Not only is this position cruel and punitive, it will not reduce incidence of homelessness, mental illness, or addiction. If implemented, this new policy will drastically increase the number of people experiencing homelessness. The cuts to permanent supportive housing and harm reduction programs will be devastating to our progress toward ending the HIV epidemic, of which stable housing and harm reduction are key pillars. There will be an increase in HIV transmission as thousands lose housing stability and access to sterile syringes, and all communities across our state will feel the impact. The cost of supporting our community members in crisis will fall to us to cover, while our federal tax dollars are directed elsewhere.
In Illinois, CoC funds support housing for 21,000 Illinoisans and 27,000 emergency shelter beds. Across the state, federal CoC funding currently supports more than 330 CoC grants, totaling approximately $182.5 million, to nonprofit and local government agencies. The National Alliance to End Homelessness estimates that 60% of all permanent supportive housing in Illinois is federally funded, and in some downstate and rural communities, the percentage is much higher. Under the policy, existing CoC grantees could run out of funding as soon as early 2026.
Let’s be clear – this change is not about improving or reforming housing policy. It is about gutting the social safety net programs upon which our communities rely to ensure that people experiencing chronic homelessness and illness can find stability and support. It is about criminalizing poverty and punishing the Black and Latine communities disproportionately impacted by homelessness. At the same time as issuing this policy change to how housing is funded by HUD, the Trump administration is seeking to build institutions that many fear will function as de-facto prisons or work camps to incarcerate people experiencing homelessness, mental illness, or addiction.
At AIDS Foundation Chicago and the Center for Housing & Health, we know permanent supportive housing and housing-first programs work and are the best way to interrupt chronic homelessness, substance use, and mental health challenges for our unhoused neighbors. As the name describes, housing-first programs provide participants with housing and then offer supportive services like mental health care and substance use treatment, to which people are more able and likely to adhere once they have the safety and stability of housing. This is a proven approach that is critical to our work to end the HIV epidemic. The root cause of homelessness in the United States is the soaring, unaffordable cost of housing, not an individual’s choices or behavioral health challenges.
Together with our partners, we are advocating for HUD to rescind this change. Over 300 housing providers in Illinois issued a joint letter to HUD’s Secretary Scott Turner, and we call upon all of our partners and supporters to contact your congressional representatives and loudly voice your opposition to this HUD directive.
TAKE ACTION:
Participate in this campaign from The National Alliance to End Homelessness: ACT NOW: Tell Congress to stop HUD!
Call your Congress person via the Capitol Switchboard and tell them you support permanent supportive housing and oppose the new funding requirements for HUD’s Continuum of Care program: (202) 224-3121.
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