Wednesday, July 1, 2026

HUD Rejects Failed “Housing First” Strategy

 The Department of Housing and Urban Development (HUD) has announced significant changes to its homelessness strategy, aiming to address the ongoing crisis more effectively. The transition comes after many years of reliance on the controversial “Housing First” approach, which advocates argue has not yielded satisfactory results.

● New Approach: HUD's recent overhaul aims to tackle homelessness as a complex issue involving addiction, mental illness, and crime, rather than just a lack of housing. This marks a shift from the long-held belief that "housing solves homelessness. "

● Failures of Previous Strategy: The “Housing First” strategy led to a rise in the unsheltered homeless population, with reports highlighting alarming mortality rates among participants and a failure to promote self-sufficiency.

● Grant Renewal Changes: The traditional practice of automatically renewing homelessness grants is ending. HUD plans to deny funding to Continuums of Care (CoCs) that do not demonstrate proper governance, transparency, and effective program results.

● State Initiatives: Recent movements, particularly in Utah, have called for state-level discretion in addressing homelessness, a demand that HUD's new guidelines seem to acknowledge.

● Activist Response: In reaction to HUD's changes, many homelessness advocates are attempting legal action to block the new policy, and some are advising CoCs on how to circumvent these new requirements. Critics argue these efforts detract from improving services.

● Immediate Consequences: HUD has already suspended funding for Los Angeles's Homelessness Services Authority due to concerns about its effectiveness. This emphasizes HUD's commitment to ensuring grantees can demonstrate accountability.

HUD's renewed focus aims to shift towards a more structured and effective response to the homelessness crisis, emphasizing treatment and self-sufficiency over unconditional housing support. As changes unfold, it remains crucial for service providers to align with new federal directives to secure funding and improve outcomes for homeless individuals. 

https://www.city-journal.org/article/hud-homelessness-program-housing-first

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