Following the conclusion of the longest government shutdown in U.S. history, the Department of Housing and Urban Development (HUD) is rolling out significant reforms aimed at addressing homelessness and supporting youth transitioning out of foster care. The shutdown lasted for 43 days, placing millions of vulnerable Americans in precarious situations as federal services were severely disrupted.
Scott Turner, Secretary of HUD, emphasized the shutdown’s detrimental impact on federal operations, stating that it jeopardized healthcare financing and froze crucial housing programs. As Congress passed a funding bill with bipartisan support, HUD is now poised to restore full operational capacity and swiftly implement necessary changes.
Restoring Stability and Addressing Homelessness
On March 15, 2024, just one day after the government reopened, Turner announced an ambitious plan to allocate $3.9 billion through HUD’s 2025 Continuum of Care program. This represents the most extensive overhaul of the program in its three-decade history. The funding is part of a broader strategy to shift away from the previous “Housing First” model that dominated federal spending on homelessness.
Turner criticized past policies as ineffective, noting that 90 percent of funds were directed towards Housing First initiatives, while transitional programs, which promote long-term self-sufficiency, received less than 2 percent. “Our philosophy will now define success not by dollars spent or housing units filled, but by how many people achieve long-term self-sufficiency and recovery,” he stated.
Under the new guidelines, at least 70 percent of projects must compete for funding, a significant increase aimed at enhancing accountability. The program will now prioritize personal responsibility, treatment requirements, and partnerships with law enforcement for public safety. Faith-based organizations, previously marginalized in funding opportunities, will now be considered equally.
“This transformative policy reform will break cycles of addiction and drive lasting recovery,” said Robert F. Kennedy Jr., Secretary of Health and Human Services, highlighting the department’s collaboration with HUD.
New Initiative for Youth Leaving Foster Care
On the same day, First Lady Melania Trump joined Turner and Scott Bessent, Secretary of the Treasury, to unveil a new national initiative aimed at supporting youth transitioning out of foster care. This effort addresses a critical need, as approximately 25 percent of the more than 20,000 young people who age out of foster care each year experience homelessness within four years.
In alignment with President Trump’s executive order, “Fostering the Future for American Children and Families,” the initiative seeks to coordinate efforts across federal agencies, nonprofits, and private-sector partners to create educational and employment opportunities for these young adults. “This Executive Order gives me tremendous pride,” the First Lady remarked, emphasizing the shared commitment to fostering a supportive environment for at-risk youth.
The initiative will include plans to establish a national online resource hub for foster youth, expand access to Education and Training Vouchers, and create new pathways to scholarships and credentialing programs. Additionally, the Office of Personnel Management will be opening federal internships specifically targeted at young adults with foster care backgrounds.
With the government shutdown now behind them, HUD is entering a transformative phase. Turner indicated that the department will rapidly work to clear backlogs created during the shutdown and implement these expansive reforms across homelessness, housing finance, and youth support sectors. “Our mission is to empower Americans to achieve independence and stability,” he concluded, underscoring the urgency of these initiatives.
