Housing officials, advocates warn shift in HUD funding could unhouse thousands in Maryland

by Danielle J. Brown, Maryland Matters
November 20, 2025

State officials and anti-homelessness organizations  said they fear a shift in federal funding priorities could result in thousands of Marylanders who now benefit from permanent housing assistance, instead facing homelessness once again.

The U.S. Department of Housing and Urban Development last week announced policy changes that cut funding from permanent housing solutions for people experiencing homelessness, opting for an emphasis on temporary housing supports.

HUD Secretary Scott Turner said in a statement that the change “restores accountability to homelessness programs and promotes self-sufficiency among vulnerable Americans.”

“It redirects the majority of funding to transitional housing and supportive services, ending the status quo that perpetuated homelessness through a self-sustaining slush fund,” his statement said.

But Maryland Housing Secretary Jake Day says the funding change would cut $42 million from Maryland programs that help provide permanent housing options to people struggling with homelessness.

He warns that move could land 4,300 formerly unhoused people back out onto the street.

“The Trump Administration’s decision will directly result in a 25 percent spike in homelessness across Maryland. It will reverse decades of progress to reduce unsheltered homelessness,” Day said in a statement Thursday.

“It will force domestic violence survivors to return to abusive households and unaccompanied youth to couchsurf with strangers,” Day said. “And it will increase burdens on hospital emergency departments, fire, police, EMS, and shelters.”

Concerns from advocates primarily revolve around funding changes for a program called Continuum of Care. A recent Notice of Funding Opportunity for the program raised alarm bells for housing advocates.

The National Low Income Housing Coalition says the policy changes “will quickly upend homelessness response systems throughout the country and increase homelessness.”

“The new policy … slashes support for permanent housing programs by more than half, putting as many as 170,000 people who rely on CoC assistance for stable, affordable housing at risk of returning to homelessness,” the coalition said.

The coalition said that about 87% of the $3.5 billion typically allocated for Continuum of Care goes to permanent housing solutions for people facing homelessness. The recent funding notice would reduce the amount allocated for permanent housing down to 30%, or little more than $1 billion, with a preference for temporary housing options.

Groups like the National Low Income Housing Coalition say the temporary options — such as high-barrier transitional housing or emergency shelters — can be less effective and cost more in the long run.

People facing chronic homelessness often struggle with mental health needs and drug addiction. Advocates say that permanent housing programs may address those challenges by pairing with connections to mental health services and other resources.

Scott touts reduction of thousands of vacant Baltimore properties since 2020

“Funding goes to communities for a range of homelessness assistance,” said Kevin Lindamood, president and CEO for Health Care for the Homeless in Maryland, during a virtual roundtable discussion Thursday with Maryland agency leaders. “But over the last 20 years, in a very bipartisan way, HUD funding has been moving much toward helping people find housing and keeping it.”

Housing advocates say that moving away from the permanent housing solutions will undo progress made in recent years to reduce the number of homeless people across the United States, including in Maryland.

Day said that “Housing First” policies have been effective over the last decade.

“Utilizing Housing First practices, we have cut unsheltered homelessness by 42% and overall homelessness by 28% since 2015,” he said. “The experts and bipartisan officials agree: permanent supportive housing is the evidence-based practice that most effectively and most affordably solves homelessness.

“$46 million in cuts to Maryland’s funding allocation will result in more than 2,400 Maryland households – including 4,300 people and 1,900 children – losing their homes,” Day said. “With no available vouchers, no surplus of affordable units, and no alternatives to absorb this massive displacement, the vast majority will be forced straight back into homelessness.”

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