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HUD Report Shows Small Drop in Homelessness as Administration Moves Away From Housing First

The administration is redirecting federal funds to recovery, treatment and outcome-tied programs, a change that could reshape local services, veterans supports, and shelter funding.

Overview

  • HUD’s point-in-time count found about 745,652 people were homeless on a single night in January 2025, a 3% drop from 2024, and the report was released Friday after a five-month delay.
  • Secretary Scott Turner emphasized a 27% rise in homelessness since 2013 and said HUD will shift policy away from a pure "housing first" approach toward programs that require or tie housing to treatment, work and measurable outcomes.
  • The department announced a new $4.04 billion Notice of Funding Opportunity for its Continuum of Care program and signaled roughly $1.3 billion in investments for transitional housing and supportive services focused on treatment and recovery.
  • State counts vary widely: 28 states recorded increases, with North Carolina up 33% largely because of Hurricane Helene and added shelter beds, while Hawaii and Illinois showed the largest percentage declines; officials cite immigration flows, overdose deaths, disasters and shelter capacity as local drivers.
  • Veteran homelessness continued to fall to 32,495 (a 1% drop from the prior year and a 56% decline since 2009), but advocates warn the administration’s funding and accountability shift could strain targeted veteran services and prompt local resistance to new program rules.