Under a pending policy change, that figure would fall to around 30%, with available financing reduced from $ 3.3 billion to around $ 1.1 billion in 2026, the report said.
HUD employees and others who are familiar with the plan – who spoke with polico on condition of anonymity because they were not authorized to discuss the case – warned that the cutbacks could run the risk of returning to hiding places or streets.
Families with children, people with chronic diseases and people with disabilities are among the most likely affected. Rural areas, which are highly dependent on federal support, can be hit hardest, the report added.
“When the subsidy and the support that goes with it is removed, it brings people with a serious risk,” said a person with direct knowledge of the program.
Those who spoke with polico knew the movements as “devastating” and a “sausage-case scenario”.
HUD confirmed the policy shift to Politico and emerged as a change in philosophy.
“HUD is no longer busy with permanent financing of homelessness without measuring the success of programs in promoting recovery and self -supply,” said a spokesperson.
Legitimate and consequences
Internal worries are set up on the legality of the policy, Polito said.
Two HUD employees said they were excluded from lawyer’s lawyers calling questions about whether the change meets the McKinney-Vento Homeless Assistance Act. This legislation created the continuum of the care program to end homelessness through a mix of housing sources.
Earlier this year, HUD secretary Scott Turner stated that he would be open to withholding federal funds of cities that do not show any progress when dealing with homelessness.
Local home providers have meanwhile been left without supervision.
HUD employees said they were instructed not to inform community partners about the upcoming cuts, which are expected to be detailed in detail in a notification of financing options within a few weeks.
The policy would also punish applicants who used racial preferences or recognized transgender people in their programs, according to internal HUD documents.
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