By Marisa Kendall | CalMatters
Published Jun 24, 2026 1:00 PM
Rows of tents at the O Lot Safe Sleeping site in San Diego on Aug. 12, 2024. The city of San Diego opened the site in 2023 to offer temporary shelter for unhoused residents after it began implementing the Unsafe Camping Ordinance, which bans homeless encampments.
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Adriana Heldiz
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CalMatters
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The Trump administration is renewing its push to change the way it funds homeless shelters and housing in California and other states, and several agencies say it could disrupt their services.
It tried last year to move federal homelessness funds away from permanent housing and into temporary housing that requires sobriety. That move, which goes against the existing “housing first” policy favoring a no-strings-attached approach to housing, was blocked by a federal judge.
Now, the Trump administration is trying again. Once again, it’s facing pushback.
This week, a group that includes the National Alliance to End Homelessness and Santa Clara County filed a challenge in Rhode Island’s federal court to the Trump administration’s latest funding guidelines.
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The Trump administration’s callous decision to take a second bite at dismantling one of our nation’s most important homelessness prevention programs after a federal court already blocked the administration’s first attempt shows a complete disregard for the people who depend on this funding to keep a roof over their heads,” Santa Clara County Counsel Tony LoPresti said in a news release.
More than $4 billion in federal funding is at stake. The National Alliance to End Homelessness estimates the proposed changes could cost California nearly $238 million for permanent housing, and threaten to put nearly 15,000 Californians back on the street.
“The ‘housing first’ experiment failed Americans by warehousing the vulnerable without results. This ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels,” HUD Secretary Scott Turner said in a news release earlier this month.
This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
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