The Department of Housing and Urban Development (HUD) has emerged from the longest government shutdown in U.S. history with significant policy reforms aimed at addressing homelessness and supporting youth transitioning from foster care. After a 43-day shutdown that concluded on March 15, 2024, HUD is now focused on restoring vital services and launching new initiatives, according to Secretary Scott Turner.
During the shutdown, Turner warned that millions of vulnerable Americans faced dire consequences as federal operations ceased. Essential programs were halted, and nearly $2 billion in healthcare-related Federal Housing Administration (FHA) mortgage applications were delayed, affecting care facilities in over 30 states. Additionally, repairs for more than 10,000 homes contaminated by lead hazards were suspended, jeopardizing the safety of low-income families across the nation.
Once the government reopened, HUD announced a comprehensive plan to restore operations and implement sweeping reforms in its homelessness programs. Turner emphasized that the department will “immediately restore stability and resume full operational capacity.”
Major Overhaul of Homelessness Programs
Just one day after the shutdown ended, HUD unveiled a groundbreaking initiative that includes $3.9 billion in competitive grants through its 2025 Continuum of Care program. This funding marks what Turner described as the most significant reform in the program’s three-decade history. The initiative aligns with President Donald Trump’s executive order titled “Ending Crime and Disorder on America’s Streets,” which seeks to shift focus away from the traditional “Housing First” model.
Turner criticized the previous model, describing it as a “self-sustaining slush fund” that primarily directed resources to projects with little accountability. Under the new guidelines, at least 70 percent of projects must compete for funding, ensuring greater scrutiny and accountability in grant distribution. The program will now prioritize personal responsibility, treatment requirements, and collaborations with law enforcement to promote public safety.
“Housing First” projects previously received approximately 90 percent of federal funding, while transitional programs aimed at long-term self-sufficiency received less than 2 percent. Turner emphasized the need for a new approach: “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.”
New Initiative for Foster Youth
On the same day, First Lady Melania Trump joined Turner and Treasury Secretary Scott Bessent to announce a national initiative designed to support youth transitioning out of the foster care system. This population is particularly vulnerable to homelessness and economic instability. The initiative follows President Trump’s executive order “Fostering the Future for American Children and Families,” which aims to coordinate efforts among federal agencies, nonprofits, and private-sector partners.
The new initiative will include the creation of a national online resource hub for foster youth, expanded access to Education and Training Vouchers, and pathways to scholarships and short-term credentialing programs. Additionally, the Office of Personnel Management will establish federal internships specifically for young adults who have aged out of foster care.
According to federal estimates, more than 20,000 young individuals age out of foster care each year, and around one-quarter experience homelessness within four years. The new programs aim to provide essential resources and support to help these youths secure housing, employment, and mentorship.
As HUD embarks on this period of transformation following the shutdown, Turner underscored the department’s commitment to empowering Americans. “Our mission is to empower Americans to achieve independence and stability,” he stated. The reforms initiated through the recent announcements represent a strategic pivot towards more effective support for the nation’s most vulnerable populations.
