Recent changes to federal homelessness policy under President Donald Trump and Housing and Urban Development Secretary Scott Turner have placed several housing projects in Texas at danger, despite the state’s progress in reducing street homelessness.
Over the past 15 years, cities like Houston have significantly decreased the number of people living on the streets. According to the Texas Homeless Network, the overall homeless population in Texas has been declining, aided by long-standing federal investments in supportive housing.
But advocates now warn that these programs face uncertainty. As reported by the San Antonio Express-News, the Department of Housing and Urban Development (HUD) has begun redirecting funds based on political and ideological criteria, potentially jeopardizing projects even in Republican-led states like Texas.
HUD withdrew $11.8 million in funding previously approved to build a 70 unit housing project in Laredo. Officials say they plan to reapply but are concerned Texas may not meet new federal criteria, despite having its own state-level system.
“My biggest fear [in Houston] is apartment prices go up, and we could quickly bump out of having enough places for people to be,” said Kelly Young, president of the Coalition for the Homeless of Houston/Harris County.
A 200-person housing project proposed by Close to Home, a San Antonio non-profit, also faces uncertainty. “Even Texas applicants technically may not be eligible,” said Katie Wilson, the organization’s president, in comments to the San Antonio Express-News.
In July, Trump issued an executive order directing a shift away from the “housing first” approach –-a strategy prioritizing housing without preconditions— and called instead for institutional settings and service-linked housing.
“Our goal is to let HUD use real, proven effective strategies, and there is no evidence that giving free apartments to the homeless without preconditions or participation requirements –like job training or treatment– leads to good outcomes,” said Turner to Fox News.
New HUD guidelines now restrict $75 million in funding to jurisdictions that cooperate with federal immigration enforcement, ban public camping, and reject policies perceived as promoting racial preferences or non-binary gender recognition. Critics argue these conditions are designed to favor politically aligned communities.
While Texas laws on immigration and public camping may help meet some criteria, the funding changes have already impacted planned developments and raised questions about future eligibility. HUD did not respond to media requests, citing a limited operating capacity.
Meanwhile, the national non-profit Alliance to End Homelessness has filed a lawsuit challenging the legality of the funding shift. A federal judge has issued a temporary injunction against the new requirements, pending further review.
Democratic lawmakers have also called for an investigation into whether the administration unlawfully withheld funds appropriated by Congress.
Advocates like Kelly Young, head of the Coalition for the Homeless of Houston/Harris County, warn that continued instability in funding could reverse years of progress. “We’re gaming out three or four different scenarios,” she told the San Antonio Express-News.