The Trump administration has decided to reduce Maryland’s federal funding by $46 million, which is crucial for providing secure housing for individuals in need. According to state officials, this cut is anticipated to lead to a 25% rise in homelessness throughout Maryland.
Maryland’s Secretary of Housing and Community Development, Jake Day, expressed his concerns, stating, “Make no mistake: This decision from the Trump administration will lead to a significant 25 percent increase in homelessness across the state. It threatens to undo decades of progress made to combat unsheltered homelessness,” as reported to Capital News Service.
Since 2015, Maryland has made remarkable strides in decreasing homelessness rates. By adopting housing-first strategies—providing individuals and families experiencing homelessness with prompt access to permanent residences—the state has achieved a 42% reduction in unsheltered homelessness and a 28% decrease in total homelessness in the last decade, as noted by Day.
“This recent decision will undo many years of progress in decreasing unsheltered homelessness. It will compel survivors of domestic violence to return to harmful living situations and will force unaccompanied youth to seek shelter with strangers,” Day emphasized.
The Trump administration’s funding cuts target the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) program, which is the largest federal funding source for various homelessness support services in the nation. The current annual budget for this program is approximately $3.5 million, as stated by the National Low Income Housing Coalition.
The CoC program aims to assist communities in eliminating homelessness by allocating funds to nonprofits, local governments, and states. It supports rehousing initiatives for individuals and families and helps more than 750,000 individuals nationwide. Notably, around 87% of the funding is dedicated to permanent housing solutions.
CoC utilizes the annual Notice of Funding Opportunity (NOFO) to empower communities to expand permanent housing options through construction, acquisition, and rehabilitation activities.
Under the proposed changes, the administration intends to limit CoC communities to allocating just 30% of their funding towards permanent housing. The remaining funds will be redirected to other programs, such as emergency shelters and transitional housing, which have proven to be less effective in addressing unsheltered homelessness compared to permanent solutions, according to the NLIHC.
A total of 20 states, including Maryland, are currently suing the administration over these policy changes.
Day further pointed out that more than 2,400 households in Maryland—affecting approximately 4,300 individuals, including 1,900 children—are at risk of losing their homes due to these funding cuts.
“With no available housing vouchers, a lack of affordable units, and no alternatives to accommodate such a large displacement, the vast majority will be pushed back into homelessness,” Day stated.
Additionally, the new stipulations for CoC will allow HUD to deny funding to organizations that support transgender and nonbinary individuals.
The 2024 HUD homelessness assessment report highlighted that 58% of transgender individuals facing homelessness in the U.S. utilize shelters, representing the highest rate among all demographic groups.
In response to the looming crisis, Maryland Governor Wes Moore has announced the funding of eviction and homelessness prevention initiatives through the Community Schools Rental Assistance Program (CSRAP). Applications are now being accepted in eight areas, including Anne Arundel, Baltimore City, Baltimore County, Frederick, Montgomery, Prince George’s, Washington, and Wicomico.
The CSRAP is designed to assist families and students enrolled in community schools by providing emergency financial aid. This program offers various forms of support for individuals at risk of eviction, loss of housing, or facing homelessness.
Governor Moore stated, “A safe and stable home is crucial for a child’s growth and development. The Community Schools Rental Assistance Program aims to provide support for vulnerable students and their families facing housing instability. This is a collaborative initiative that unites housing resources, educators, and community partners to further our administration’s mission of eradicating child poverty.”
