U.S. administration shifts homelessness funding toward addiction treatment

The Trump administration is implementing a major shift in federal homelessness strategy, moving away from the long-standing ‘Housing First’ approach toward a ‘Treatment First’ model. This new direction prioritizes addiction recovery, sober living, and law enforcement cooperation as conditions for support.

The Department of Health and Human Services (HHS) has awarded $42.3 million in supplemental funding to states and territories to accelerate this transition. Managed by the Substance Abuse and Mental Health Services Administration (SAMHSA), the funds aim to build workforce capacity and expand licensed recovery housing. Approximately $17.3 million is designated for Community Mental Health Services Block Grant recipients, while $25 million is directed toward Substance Use Prevention, Treatment, and Recovery Services.

Simultaneously, the Department of Housing and Urban Development (HUD) is proposing changes to the Continuum of Care program. The proposal seeks to incentivize transitional housing that focuses on behavioral healthcare and employment, rather than permanent housing without sobriety requirements. HUD cited cities like Anchorage, Houston, Portland, and San Francisco as examples of localities already shifting toward treatment-based responses and public camping restrictions following the 2024 Supreme Court decision in City of Grants Pass v. Johnson.