Nationwide — President Trump’s administration has warned that a major federal program helping families avoid homelessness is running out of money — and Black Americans, who make up the largest group of unhoused people in the U.S., may be hit the hardest. The emergency housing assistance was created in 2021 under President Joe Biden through the American Rescue Plan. It is expected to run out of funding by the end of 2025.
The $5 billion program was designed to help people escape homelessness, domestic violence, or financial hardship. It was meant to last at least a decade. But rising rent prices have quickly drained the funds, putting over 60,000 families and individuals at risk of losing housing support, according to the Associated Press. Many of these households have made significant progress toward stability, which could be erased without continued funding.
The Department of Housing and Urban Development (HUD) has sent letters to local organizations managing the program. These letters advised them to brace for the worst and manage resources with the assumption that no additional federal funding will follow. Experts and advocates warn that cutting off support now would be devastating for vulnerable groups who already face barriers to affordable housing.
Congress holds the power to renew the program, but political tensions make that unlikely. With a Republican majority focused on cutting the federal budget, chances of more money being approved are slim. Housing advocates say the program’s end would force thousands back into shelters or onto the streets, especially in communities of color.
According to HUD’s 2024 report, more than 770,000 Americans were homeless as of January, an 18% increase from the previous year. Of that number, over 240,000 identified as Black or African American — roughly 32% of the homeless population — despite making up about 13% of the U.S. population. Without continued federal support, advocates fear the racial disparities in homelessness will only grow.