In a recent ruling that defies both logic and compassion, a federal judge has <a href="https://www.reuters.com/world/us-judge-blocks-trump-administration-from-altering-homelessness-funding-2025-12-19/">blocked</a> the Trump administration’s effort to reform the Department of Housing and Urban Development’s (HUD) Continuum of Care program — the federal government’s primary funding mechanism for homelessness assistance.
The lawsuit — filed by a coalition of 20 mostly Democratic-led states, local governments, and nonprofit organizations and spearheaded by groups such as Democracy Forward — warns of “funding gaps,” winter instability, and the potential displacement of people currently housed. These alarms are sounded even though HUD includes a nearly 12% increase over last year’s funding allocation.
At the core of the complaint is a <a href="https://urldefense.com/v3/__https://democracyforward.org/wp-content/uploads/2025/12/NAEH-v-HUD-25-cv-636-ECF-5-Motion-for-PI-and-Relief-under-705.pdf*page=74__;Iw!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b0_31aptA$">revealing claim</a>: that reform would “upend longstanding projects that have been thoughtfully developed to comport with evidence-based, best-practices services delivery.”
But HUD’s own data make clear that the evidence on which they have long relied is catastrophically wrong.
Despite a 300% increase in federal spending, homelessness has reached the <a href="https://urldefense.com/v3/__https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-1.pdf__;!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b1tF5NG4A$">highest level ever recorded</a> in the nation’s history. Unsheltered homelessness — the most dangerous and lethal form — has surged. 
<a href="https://urldefense.com/v3/__https://www.theguardian.com/us-news/2022/feb/07/homelessness-is-lethal-deaths-have-risen-dramatically__;!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b16yXyxfA$">Mortality</a> among people struggling with homelessness has also peaked. If these outcomes qualify as “evidence-based best practices,” then the phrase has lost all meaning.
The real question is not whether reform is upending but upending to whom.
The organizations positioning themselves as defenders of the homeless are fully aware of the catastrophe that has unfolded on their watch. Yet they are using the courts to block reforms aimed at saving lives, restoring accountability, and reversing a crisis their preferred policies helped entrench.
For more than a decade, Housing First has dominated federal homelessness policy. It prioritizes lifelong subsidized housing — branded as “permanent housing” — while eliminating requirements for sobriety, treatment for mental illness or addiction, or participation in work. Its architects promised stability, lower costs, and an <a href="https://urldefense.com/v3/__https://www.mcclatchydc.com/news/nation-world/national/economy/article24585973.html__;!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b1Wqmbr6A$">end to homelessness in a decade</a>.
Instead, the model guarantees keys to a housing unit while making treatment optional and accountability negligible.
With nearly 80% of the homeless population struggling with mental illness and/or addiction, the result is predictable and deadly: people are placed alone in apartments, isolated from the community and clinical intervention these diseases require. Overdoses go unseen, and help arrives too late.
California — the only state to adopt federally-mandated Housing First with state funding in 2016 — provides a stark case study. Despite an unprecedented <a href="https://urldefense.com/v3/__https://www.auditor.ca.gov/reports/2023-102-1/__;!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b1UVCip7w$">$24 billion investment</a> from 2019 to 2023, homelessness surged 40%. Encampments have proliferated, public trust has eroded, and taxpayers have seen zero return on their investment.
Yet as desperately needed reform proposals emerge, self-described “homeless advocates” — including several based in California — reflexively resist.
<div id="attachment_1041759" style="width: 874px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-1041759" class="size-large wp-image-1041759" src="https://dw-wp-production.imgix.net/2026/02/GettyImages-2260696041-864x576.jpg" alt="San Francisco Homeless Outreach Team vehicle with city department logo parked on urban street, San Francisco, California, February 5, 2026. (Photo by Smith Collection/Gado/Getty Images)" width="864" height="576" srcset="https://dw-wp-production.imgix.net/2026/02/GettyImages-2260696041-864x576.jpg 864w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2260696041-300x200.jpg 300w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2260696041-768x512.jpg 768w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2260696041.jpg 1024w" sizes=" (max-width: 864px) 100vw, 864px" />San Francisco Homeless Outreach Team vehicle with city department logo parked on urban street, San Francisco, California, February 5, 2026. (Photo by Smith Collection/Gado/Getty Images)</div>
Their concern is not instability for the homeless, but instability for themselves: the potential loss of 12-year guaranteed renewals, preferred status, and the comfort of championing a single, simple — demonstrably failed — approach.
<a href="https://urldefense.com/v3/__https://www.discovery.org/m/securepdfs/2025/11/Local-Jurisdictions-Leverage-Homelessness-Reforms.pdf__;!!PxibshUo2Yr_Ta5B!xO6geyODkpCcJJLckbboq5Bc5WbRjXwQ1YdJOI3TUHlXy8ViAXC-6FTtOWcF28WV6ZXhtdC73WFG6b1YAAbk9A$">HUD’s proposed reforms</a> would rebalance funding toward transitional housing, mandatory treatment for addiction and mental illness, work and recovery expectations, and measurable outcomes — changes designed to promote self-sufficiency, public safety, and life-saving interventions.
The plaintiffs warn of “chaos” if reform proceeds. But chaos is not hypothetical — it is the present reality. Record homelessness despite unprecedented public spending. Sidewalks surrendered to encampments. Tens of thousands dead from overdoses, exposure, and untreated psychosis, including 18 mothers, fathers, sisters, and brothers who <a href="https://www.dailywire.com/news/nyc-winter-death-toll-climbs-to-18-as-many-homeless-left-to-freeze-outside?author=Brecca+Stoll&amp;category=News&amp;elementPosition=0&amp;row=0&amp;rowType=Vertical+List&amp;title=NYC+Winter+Death+Toll+Climbs+To+18+As+Many+Homeless+Left+To+Freeze+Outside">died on the streets of New York City</a> in just the past two weeks.
<div id="attachment_1041761" style="width: 869px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-1041761" class="size-large wp-image-1041761" src="https://dw-wp-production.imgix.net/2026/02/GettyImages-2258376634-859x576.jpg" alt="NEW YORK, NEW YORK - JANUARY 26: A person sleeps on a sidewalk with their belongings January 26, 2026 in the Manhattan borough of New York City. New York Mayor Zohran Mamdani has pledged to end sweeps of homeless encampments and plans to create a new Department of Community Safety, which will coordinate homeless outreach and respond to mental health crises. (Photo by Robert Nickelsberg/Getty Images)" width="859" height="576" srcset="https://dw-wp-production.imgix.net/2026/02/GettyImages-2258376634-859x576.jpg 859w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2258376634-300x201.jpg 300w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2258376634-768x515.jpg 768w, https://dw-wp-production.imgix.net/2026/02/GettyImages-2258376634.jpg 1024w" sizes=" (max-width: 859px) 100vw, 859px" />Robert Nickelsberg/Getty Images</div>
This is not a system at risk of failure. It has already failed.
The threat these reforms pose is to institutional comfort. The Housing First industry knows it will lose guaranteed funding renewals, protected status, and a model optimized for compliance rather than outcomes, to which it has become accustomed over the last 12 years.
Where is the outrage for those left lining the streets year after year, promised housing that never materializes?
Where is the outrage for those who died waiting for a system to recognize their worth and deliver the help that could have saved their lives?
By collapsing expectations to the bare minimum, Housing First has reduced capable human beings to permanent dependents — managed rather than restored, housed rather than helped — rather than treating them as people worthy of recovery, accountability, and reintegration into society.
True advocacy requires accountable compassion. It demands intervention when people are too sick to choose safety for themselves, and the moral courage to admit when a policy has become lethal.
The court’s injunction jeopardizes urgently needed funding and reform, but it also exposes a grim truth: those fighting to preserve Housing First are defending a deadly status quo. Every day reform is delayed, more lives unravel, and more people die from fentanyl poisoning, methamphetamine addiction, and untreated mental illness.
Those struggling with homelessness deserve far more than containment. They deserve a real path off the streets. They deserve recovery. They deserve the opportunity to rediscover purpose.
Reform is not disruption. It is a rescue mission.
* * *
Michele Steeb is the founder of Free Up Foundation and author of “Answers Behind the RED DOOR: Battling the Homeless Epidemic,” based on her 13 years as CEO of Northern California’s largest program for homeless women and children. She is a Visiting Fellow with the Discovery Institute’s Fix Homelessness Initiative. Follow them on Twitter: @SteebMichele and @ DiscoveryCWP.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.

Homelessness In New York City

More Spending, More Suffering: The Failure Of America’s Homelessness Policy

Homelessness

Housing and Urban Development

New York City

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Minneapolis’ housing plan is facing a fair housing investigation by the Department of Housing and Urban Development, the federal government announced on Thursday afternoon.
Specifically, HUD is concerned that aspects of the Minneapolis 2040 plan may violate Title VI of the 1964 Civil Rights Act and the Fair Housing Act, according to a press release. The release notes that the plan’s proposal for “cultural districts… where a significant portion of the population is comprised of people of color, Indigenous people, and/or immigrant communities&#8221; could be discriminatory. In addition, the Trump administration is raising red flags about the city&#8217;s emphasis on “people of color” and “indigenous people” for homeownership programs.
“For example, your Community Planning and Economic Development department will prioritize ‘rental housing for Black, Indigenous, People of Color and Immigrant communities’ by ‘leveraging [its] rental licensing authority,’” Craig Trainor, HUD Assistant Secretary for Fair Housing and Equal Opportunity, wrote in a <a href="https://www.hud.gov/sites/default/files/FHEO/documents/Ltr-from-AsstSecTrainor-to-MayorFrey-Fair-Housing-Act-Investigation_Redacted.pdf" target="_blank" rel="noopener">letter</a> to Mayor Jacob Frey. “That is not going to fly.”
HUD Secretary Scott Turner noted that Minnesota has been under intense scrutiny for fraud allegations and convictions related to government programs, which led Gov. Tim Walz to opt not to seek a third term this November.
“Minnesota is ground zero for fraud and corruption because they have chosen to ignore the law to serve a cynical political agenda. This undermines our American values, united by a common heritage, language, and commitment to equal treatment under law,” Turner said in a statement, adding that his department “will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law.”
Trainor said that Minnesotans are being “held captive to the riotous impulses of left-wing cultural arsonists.”
“Its largest city, Minneapolis, has fared no better under its clownish mayor, Jacob Frey, whose government may be engaging in unlawful discrimination by prioritizing Minneapolis residents for housing based on race and national origin rather than need. The Trump Administration will ensure Minneapolis fully complies with the Fair Housing Act,” he stated.
In response to the investigation, a city spokesperson told The Daily Wire in a statement that “Minneapolis is proud of its record on housing &#8211; to build a city that is vibrant, safe and inclusive for all. In fact, we have award-winning affordable housing programs, and our work is a model for cities around the country. This investigation appears to be about politics not affordable housing.”
The Trump administration has made efforts to clamp down on federal funding for programs ranging from food stamps to Medicaid unless more accountability measures are enacted. A federal judge halted the food stamp funding pause this week after the state sued, but the case continues, MinnPost reported.
Several individuals are facing federal wire fraud charges for attempting to abuse Minnesota’s Housing Stability Services Program, the DOJ announced in September.

Mayor Jacob Frey

Minneapolis Under Investigation Over Possible Discriminatory Housing Program

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The Department of Housing and Urban Development revealed that there were over $5 billion in “potential payment errors” made with rental assistance during the last fiscal year of the Biden administration.
Specifically, the department’s annual financial report found possible “improper payments,” as well as “process gaps” and “material weaknesses” for Tenant-Based Rental Assistance, a voucher program, and Project-Based Rental Assistance programs in fiscal year 2024.
“A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls resulting in billions’ worth of potential improper payments,” HUD Secretary Scott Turner said in a statement on Tuesday.
“HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable. Additionally, the Department is advancing efforts made under President Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for,” Turner continued.
The report also noted $77 million in potential payment errors made for tenants who have died, totaling 29,715 people, and $150.3 million in possible erroneous payments made for those with a Social Security number “that does not meet SSA rules” – just under 9,500 people.
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The report also highlighted payments doled out to over 165,000 people for “excessively high rents,” which was an estimated $287.6 million. HUD said that they are now working toward finding methods to keep a close eye on funding for Public Housing Authorities and those who receive grants from the federal government, according to a press release.
Since President Donald Trump retook office, there have been multiple major changes at HUD, including an audit on public housing authorities nationwide to ensure that illegal immigrants are not using taxpayer-funded resources.
&#8220;No longer will illegal aliens be able to leave citizenship boxes blank or take advantage of HUD-funded housing, riding the coattails of hardworking American citizens,&#8221; Turner stated at the time, <a href="https://www.foxnews.com/politics/hud-launches-crackdown-illegal-immigration-public-housing-riding-coattails" target="_blank" rel="noopener">Fox News</a> reported.
HUD and the Department of Homeland Security announced a Memorandum of Understanding in March to provide information as it relates to illegal immigrants in the public housing system.
“The Biden Administration prioritized illegal aliens over our own citizens, including by giving illegal aliens taxpayer-funded housing at the expense of Americans. Not anymore. The entire government will work together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally. If you are an illegal immigrant, you should leave now. The gravy train is over,” DHS Secretary Kristi Noem stated, according to a press release at the time.

Senate Hearing Examines Eric Scott Turner To Be HUD Secretary

Trump Admin Finds Billions Of Dollars In Possible ‘Payment Errors’ During Biden-Era

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waste fraud abuse

The U.S. Department of Housing and Urban Development (HUD) has launched a <a href="https://www.washingtonpost.com/business/2025/12/11/hud-boston-fair-housing-discrimination">sweeping civil rights investigation</a> into the city of Boston, accusing Democratic Mayor Michelle Wu’s administration of implementing housing policies that unlawfully favor black, Latino, and other minority residents. The probe, announced Thursday, represents one of the most aggressive federal interventions yet in the Trump administration’s broader effort to dismantle local diversity, equity and inclusion (DEI) initiatives it argues violate anti-discrimination law.
In a <a href="https://www.hud.gov/sites/default/files/Main/documents/Letter-FHEO-Fair-Housing-Act-Investigation.pdf">sharply worded letter</a> to Wu, HUD’s Office of Fair Housing and Equal Opportunity said, “The context of race, fair housing is not about ‘the absence of racial discrimination . . . but the presence of deliberate systems . . . to achieve and sustain racial equity.’ But this is wrong. The text of the Fair Housing Act is unmistakably focused on eliminating discrimination in the housing market and outlining the penalties for engaging in this kind of discrimination.”
Assistant Secretary Craig Trainor wrote to Wu, “At your office’s direction, however, City officials have set out to smuggle ‘racial equity into every layer of operations in City government.’” The letter added, “City Officials Have Enthusiastically Embraced and Appear to Have Implemented the City’s Proposed Racial Spoils System.”
HUD Secretary Scott Turner echoed that language, calling Boston’s approach a “social engineering project” driven by DEI ideology rather than legitimate housing needs. “This warped mentality will be fully exposed,” Turner said, vowing the city would be brought into compliance with federal law. Turner has previously criticized what he calls race-based policymaking and, earlier this week, blamed former President Joe Biden for housing pressures tied to immigration, citing HUD’s newly released “Worst Case Housing Needs” report.
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At issue are several city housing plans—most notably the Boston Housing Strategy 2025, the Assessment of Fair Housing, and the Anti-Displacement Action Plan—which call for targeted outreach to black and Latino families, increased lending in communities of color, and allocations of homeownership opportunities intended “particularly” for BIPOC households. One goal states that 65 percent of city-supported homeownership opportunities should go to BIPOC residents. HUD argues that these provisions constitute explicit racial preferences prohibited under federal civil rights law and past Supreme Court precedent that rejects “outright racial balancing.”
HUD’s letter also criticizes Boston’s use of racially based data tools, including maps that classify neighborhoods partly by racial composition to identify areas at “high risk” of displacement and thus eligible for more city investment. The department said these classifications revive the logic of “government-sponsored redlining,” even if intended to combat inequity. It further alleges that city agencies and nonprofit partners have implemented “race-conscious marketing and buyer selection,” and that Boston has pressured banks and developers to adopt race-based benchmarks.
The investigation reflects the Trump administration’s broader shift in civil rights enforcement, which has increasingly targeted DEI programs while cutting back on traditional fair housing oversight.
HUD will request documents from the city within 10 days, after which investigators may file formal discrimination charges or refer the case to the Justice Department.

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Housing and Urban Development

More Spending, More Suffering: The Failure Of America’s Homelessness Policy

Minneapolis Under Investigation Over Possible Discriminatory Housing Program

Trump Admin Finds Billions Of Dollars In Possible ‘Payment Errors’ During Biden-Era

Trump Admin Accuses Boston Of Illegal Race-Based Housing Policies