JACKSON, Tenn. — Federal cuts to permanent housing could be a reality, leaving thousands of people homeless.
The U.S. Department of Housing and Urban Development plans to cut funding allocation for permanent housing programs, according to a leak reported by Politico.
This move by the Trump administration could re-expose thousands of individuals to homelessness.
“We have people that have severe mental health [issues]. We have people that are in recovery, and just pulling back and not being there for that person when they need us would be devastating for that individual,” said Amy McDonald, Director of TN Homeless Solutions.
The department’s Continuum of Care program currently allocates over $4 million to West Tennessee homeless crisis response systems. 87% of those funds are dedicated to permanent housing solutions, but with planned federal funding changes, only 30% would be allocated.
“We will have some regress and fall back. Just seeing the transformation just from being housed and going to the doctor and, and just to see that fall apart, that’s heartbreaking honestly,” McDonald said.
HUD may also cut the overall Continuum of Care program funding by about half. The leftover funds would then go toward temporary housing, such as emergency shelters.
“There is a need for emergency shelter, but you have to have something in place for them to move on to,” said McDonald.
According to HUD’s housing inventory data, in 2024, Tennessee had about 5,200 permanent housing households. If supportive programs are capped at 30%, more than 2,300 Tennessee households could be tossed out of their homes.
McDonald calls on Tennessee government officials to prevent what could become a housing crisis for thousands. With the continuing resolution passed by congress, HUD will maintain funding through January 30, 2026.
The next full round of funding is still being negotiated.
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