Homeless prevention programs are the latest anti-poverty program under threat from the federal government. On November 13th, the U.S. Department of Housing and Urban Development (HUD) announced that it would disregard the existing two year planning process (2025-2026) and require homeless prevention programs to reapply for funding for 2026. This change, announced only seven weeks before the start of 2026, means that key homeless prevention programs in Missouri will be without this funding for at least the first half of the year while HUD reviews the new applications. The funding gap will impact Continuum of Care (CoC) programs across the country that use these funds to prevent homelessness through outreach, emergency shelters, transitional housing, and permanent housing.
What’s at Risk in Missouri?
Missouri received over $50 million in federal funding in 2024 to fund its Continuum of Care programs. The funding is divided between seven regional Continuums of Care (Kansas City area, Joplin area, Springfield area, St. Charles area, St. Joseph area, St. Louis County, and St. Louis City) and a “Balance of State” Continuum of Care. The Missouri CoCs fund hundreds of non-profit organizations working to prevent homelessness through outreach, housing, and supportive services.
HUD’s sudden reversal threatens to interrupt housing and services precisely when communities need stability. Outreach teams may be pulled off the streets, shelters could reduce hours or beds, and families waiting for rapid rehousing could see their placements delayed for months. Providers warn that the disruption would be especially harmful for people with complex medical needs who depend on permanent supportive housing to remain safe and stable.
Why is this happening?
The delay in funding due to an ideological shift in the approach to homelessness. Despite overwhelming evidence supporting a Housing First approach, President Trump’s July 24th Executive Order called for a shift from Housing First to a focus on criminalization and treatment. To learn more about why moving away from Housing First is the wrong approach, please read Empower Missouri’s full statement on the July Executive Order here.
To force this ideological change away from Housing First, HUD interrupted the two-year planning process. The new process requires a dramatic reduction in housing funding. To deprioritize housing, the new funding criteria limit the combined amount of funding for permanent supportive housing and rapid re-housing to only 30% of the total award. Based on 2024 funding levels, Missouri CoCs will need to cut $28 million from permanent supportive housing and rapid rehousing programs to comply with this limit. HUD is jeopardizing key homeless prevention programs by prioritizing ideology over good governance.
Permanent supportive housing (PSH) is targeted to individuals and families with chronic illnesses, disabilities, mental health issues, or substance use disorders who have experienced long-term or repeated homelessness. It provides longterm rental assistance and supportive services.
A second program model, rapid re-housing, is employed for a wide variety of individuals and families. It provides short-term rental assistance and services. The goals are to help people obtain housing quickly, increase self-sufficiency, and remain housed. The Core Components of rapid re-housing—housing identification, rent and move-in assistance, and case management and services—operationalize Housing First principals.
-National Alliance to End Homelessness “What is Housing First?”
Take Action Now
Congress can intervene to prevent this gap in funding. Use this link Click the button below to use a form from the National Alliance to End Homelessness to contact your U.S. Senators and Representative and tell them to pass HUD appropriations that prohibit this last-minute change.
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