STATEWIDE — Organizations that support Mainers facing housing instability are concerned about potential funding cuts from the U.S. Department of Housing and Urban Development.
The Statewide Homeless Council and the Maine Continuum of Care recently sent a letter to Governor Janet Mills outlining immediate concerns that HUD may soon significantly cut funding to supportive housing initiatives.
According to Maine State Housing Authority Executive Director and Maine CoC board member Dan Brennan, these concerns stem from a politico article last month that reported more than half of the 2026 funding for permanent supportive housing projects will be cut.
The permanent supportive housing model combines housing assistance with supportive services to ensure people do not become unhoused again.
“The individuals that are helped through this model are much more successful in stabilizing their housing situation, getting healthy and really importantly being less of a burden on the other social structures like emergency rooms, first responders and law enforcement,” said Brennan.
The Maine CoC anticipates losing 2/3 of federal funding, resulting in the likely eviction and displacement back to homelessness for over 700 individuals.
Brennan says this is the typical time of year where HUD would have already issued the Notice of Funding Opportunity that would renew the contracts associated with the permanent supportive housing. He says that has been delayed amid the federal government shutdown.
Advocates fear this apparent change in priorities from HUD away from the permanent supportive housing model would escalate risks to homeless services and further burden Maine shelters that are experiencing full capacity.
“We’re deeply concerned about it and anything that would exacerbate the problem is not a direction that we think would make much sense,” said Brennan.
We reached out to Governor Mills for comment on the situation. A spokesperson for the governor’s office says she is looking at all available options to help Maine people who rely on SNAP and other programs interrupted by the federal government shutdown.
“The Governor continues to urge Republicans who control the U.S. House, the U.S. Senate, and the presidency to reopen the government and end this needless shutdown,” said Ben Goodman with the Office of Governor Mills.