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California Braces for ‘Devastating’ Expected Cuts to Federal Homeless Housing Funds

Cuts would reduce permanent housing funding from 87% to 30%, risking over 8,000 housing units and threatening vulnerable homeless populations in California, officials said.

  • President Donald Trump’s administration is expected to deeply cut federal funding for permanent housing, and HUD plans to shift money toward temporary housing while adding new eligibility requirements.
  • President Donald Trump signed an executive order in July directing the U.S. Department of Housing and Urban Development to end support for Housing First policies and focus on results-driven metrics.
  • Budget shifts would dramatically reduce federal support for permanent housing, with allocation dropping from 87% to 30% and nationwide funding falling from $3.3 billion to about $1.1 billion, Politico reported.
  • Counties throughout California have entered a panic as local officials warn thousands of California’s most vulnerable residents could be evicted from subsidized housing if cuts occur.
  • Santa Cruz County officials say they have 17 permanent housing projects funded with money at risk, with an about $7.7 million allocation including about 82% for permanent housing; more than 8,000 units would be jeopardized if cuts proceed.
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Federal funding for housing under threat as Berks County faces record homelessness

As more people become homeless, Berks County responders fear a devastating loss of funds following a Trump administration directive.

·Harrisburg, United States
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The Sacramento Observer broke the news in on Monday, October 6, 2025.
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