The Department of Housing and Urban Development (HUD) is taking significant steps to address homelessness and support youth transitioning out of foster care, following the conclusion of the longest government shutdown in U.S. history. The shutdown lasted for 43 days, with Secretary Scott Turner emphasizing the adverse effects on millions of vulnerable Americans as federal services were disrupted. With the government now reopened, HUD announced a series of major policy initiatives focused on restoring services and overhauling existing programs.
During the shutdown, key housing programs stalled, leading to substantial delays in healthcare financing and critical housing services. Nearly $2 billion in healthcare-related Federal Housing Administration (FHA) mortgage applications were put on hold, affecting thousands of care facilities across more than 30 states. Turner stated, “For over one month, the Left has held our government hostage,” highlighting the challenges faced by HUD and the impact on low-income families nationwide. Public Housing Authorities warned they were nearing depletion of funds essential for maintaining buildings and providing safety services.
The shutdown ended on March 15, 2024, after bipartisan votes in Congress approved a funding bill. Following this, Turner announced a comprehensive plan to restore stability and operational capacity at HUD. One of the most significant developments is the introduction of $3.9 billion in competitive grants through HUD’s 2025 Continuum of Care program. This initiative is being hailed as the most extensive reform in the program’s 30-year history.
Transforming Homelessness Initiatives
Turner outlined a shift away from the previous “Housing First” model, stating that federal policy had become a “self-sustaining slush fund” that prioritized funding without accountability. Under the new guidelines, a minimum of 70 percent of projects will now need to compete for funding, a significant increase aimed at enhancing responsibility within programs. The focus will shift towards personal accountability, treatment requirements, and partnerships with law enforcement to ensure public safety.
“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,” Turner remarked. The reforms will also allow faith-based providers to participate on equal footing with other organizations, a change welcomed by many in the community.
In a related effort, Robert F. Kennedy Jr., Secretary of Health and Human Services, expressed support for the reforms, stating, “This transformative policy reform will break cycles of addiction and drive lasting recovery.” The partnership between HUD and the Department of Health and Human Services aims to expand treatment-focused programs that address the root causes of homelessness.
New Initiative for Foster Youth
On the same day as the funding announcement, First Lady Melania Trump revealed a national initiative aimed at supporting young adults transitioning out of foster care. This demographic is notably at high risk for homelessness and poverty. The initiative aligns with President Donald Trump’s executive order, “Fostering the Future for American Children and Families,” which seeks to enhance educational and employment opportunities for these individuals.
During the announcement, Melania Trump stated, “This Executive Order gives me tremendous pride. Our united resolve will foster a thriving future filled with compassion and innovation.” The initiative includes plans for nationwide roundtables with foster youth to develop financial literacy and workforce readiness programs, with initial findings expected by spring 2026.
Specific goals outlined in the executive order include the creation of a national online resource hub for foster youth, expanded access to Education and Training Vouchers, and pathways to scholarships and credentialing programs. The Office of Personnel Management will also create federal internships specifically for young adults who have aged out of foster care, addressing a pressing need, as federal estimates indicate that more than 20,000 young people exit the foster system each year, with approximately one-quarter facing homelessness within four years.
With the reopening of the government and the launch of these ambitious initiatives, HUD aims to move swiftly to clear backlogs and implement reforms. Turner concluded, “Our mission is to empower Americans to achieve independence and stability. These reforms begin that work in earnest.” The coming months will be critical as HUD looks to restore services and ensure that vulnerable populations receive the support they need.
