On July 4th, President Trump approved a $532 million cut to Homeless
Assistance Grants. This cut impacts programs like Emergency Solutions Grants
(ESG), Continuum of Care (CoC ), and Housing Opportunities for Persons with aids (HOPWA, potentially leading to a reduction in services and support for individuals experiencing or at risk of homelessness.
Source: www.nationalalliancetoendhomelessness.org, June 2025
Elimination of Federal Education Programs
- McKinney-Vento Act
- Education for Homeless Children and Youth (EHCY)
Without the finding of the McKinney-Vento Act, nearly 1.4 million children and youth experiencing homelessness would face increased barriers to enrolling and attending school. Children would be more vulnerable to harm and exploitation, and deprived of education…the most powerful tool for escaping poverty and homelessness in adulthood.
The EHCY program is funded at $129 million and opens the doors to opportunity for some of our nation’s most vulnerable students.
Source: www.schoolhouseconnection.org, May 2025
Impact
- Decrease the number of people served by these programs.
- Reduce access to emergency shelter, housing, and support services.
- Increase homelessness. .
Education for Homeless Children
- Reduces funding for HUD and affordable housing programs
- Leads to a resurgence of homelessness in communities across America.
Source: www.schoolhouse.com, 2025
CoC Program Loss Effects
- Loss of Local Control – State involvement may result in denying re sources to some communities that have specific plans for addressing homelessness.
- Less Focus on Potential Success – Eliminates a competition for best plans or ideas for addressing homelessness with a formula for deciding who needs funds.
- Loss of Permanent Supportive Housing resources are no longer used for (PHS) for people experiencing chronic homelessness, rapid rehousing, and short-term rental subsidy.
Source: www.nationalalliancetoendhomelessness.org, 2025