The Department of Housing and Urban Development (HUD) has announced a series of significant reforms and initiatives following the conclusion of the longest government shutdown in U.S. history. After a 43-day hiatus that jeopardized essential services for millions of Americans, Secretary Scott Turner emphasized the urgency of restoring operations and addressing critical issues related to homelessness and youth transitioning from foster care.
The shutdown, which ended on March 15, 2024, after bipartisan support in Congress, had severe repercussions for HUD’s operations. Turner noted that the halt in federal operations threatened health care financing and froze vital housing programs. “For over one month, the Left has held our government hostage,” he stated. The shutdown’s effects were particularly felt among low-income families, with essential programs stalling and nearly $2 billion in healthcare-related Federal Housing Administration (FHA) mortgage applications halted.
Despite the challenges, HUD managed to maintain core services for over four million families reliant on federal housing assistance. However, significant delays ensued, including a backlog of cases for FHA-supported reverse mortgages that grew by 60 cases daily. Repairs for more than 10,000 homes affected by lead hazards were suspended, and new loans through HUD’s Section 184 housing program for tribal communities were frozen. Public Housing Authorities nationwide warned that they were close to exhausting funds necessary for maintaining buildings and providing essential services.
Major Policy Reforms in Homelessness Funding
In a swift response to the shutdown’s aftermath, Turner unveiled a groundbreaking $3.9 billion funding initiative aimed at overhauling HUD’s Continuum of Care program. This reform is described as the most significant shift in the program’s three-decade history, aligning with President Donald Trump‘s executive order “Ending Crime and Disorder on America’s Streets.”
The new funding strategy marks a departure from the previous “Housing First” model, which dominated federal homelessness spending. Turner criticized past policies as fostering a “self-sustaining slush fund” and stressed that the new approach would prioritize long-term self-sufficiency and recovery. Under the revised guidelines, at least 70 percent of projects must now compete for funding, a substantial increase aimed at enhancing accountability.
Turner emphasized that success will be measured by the number of individuals achieving lasting recovery rather than merely the allocation of funds. He stated, “We are stopping the Biden-era slush fund that fueled the homelessness crisis.” The new policies will enforce treatment requirements and strengthen partnerships with law enforcement, aiming to promote personal responsibility among recipients.
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 to support youth transitioning out of foster care. This population is particularly vulnerable to homelessness, poverty, and instability. The initiative stems from a new executive order titled “Fostering the Future for American Children and Families,” which aims to create educational and employment opportunities for these young adults.
The initiative includes a commitment to hold nationwide roundtables with foster youth to develop financial literacy and workforce readiness programs. Initial findings are expected by spring 2026. Key components of the executive order involve creating a national online resource hub for foster youth, expanding access to Education and Training Vouchers, and establishing pathways for scholarships and short-term credentialing programs. Additionally, the Office of Personnel Management will offer federal internships specifically for young adults who have been in foster care.
With over 20,000 youths aging out of foster care each year, it is estimated that approximately one-quarter experience homelessness within four years. This initiative is designed to provide the necessary support to help these individuals achieve stability.
As HUD embarks on this new chapter, Turner has reiterated the department’s mission: “Our mission is to empower Americans to achieve independence and stability.” The swift restoration of services, alongside these ambitious policy reforms, marks a decisive shift in HUD’s approach to addressing homelessness and supporting at-risk youth.
