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A range of federal programs is available to help homeless people. Some programs are targeted specifically to those who are homeless (labeled below as “homeless-specific”), while others are available to a broader group of low-income people, including those who are homeless (labeled as “mainstream”). This entry surveys the most important federal programs for homeless people: what the programs do, their size, and key issues and proposals for change. It covers programs that can provide housing for people who are homeless and those that are designed to lead to better incomes and access to supportive services for homeless people.

Homelessness policy can be divided into the three general functions that it serves: (a) managing the homelessness problem by taking care of people while they are homeless, (b) assisting people who are homeless to move back into housing, and (c) preventing people from becoming homeless in the first place. Existing federal programs and policies treat those three functions in declining order of importance. Federal programs concentrate on managing the problem and meeting the basic needs of people who remain homeless. There is, particularly recently, some focus of moving homeless people into permanent housing. There is little in the way of resources or incentives in federal policy specifically aimed at preventing homelessness.

To make progress toward ending homelessness, a much stronger focus on prevention is necessary, along with continued progress on rehousing people who are already homeless. The last part of this entry briefly examines proposals to meet those goals.

Federal Housing Programs

Lack of housing is the common denominator for all homeless people, and it is the key to the prevention of homelessness. A number of federal programs address housing for low-income people, providing either funding for capital expenses such as construction and rehabilitation, or rent subsidies to cover ongoing costs of operating housing, such as maintenance, utilities, and security. What follows is a description of federal housing programs, all administered by the U.S. Department of Housing and Urban Development, of greatest importance to homelessness.

HUD McKinney-Vento Programs/Homeless Assistance Grants (Homeless-Specific)

The McKinney-Vento Homeless Assistance Act is the most important piece of federal legislation addressing homelessness. Originally passed in 1987, it established programs in a number of federal agencies. The four McKinney-Vento programs at the U.S. Department of Housing and Urban Development (HUD) are operated in a consolidated fashion, through what HUD terms the Homeless Assistance Grants. These grants provide over $1 billion per year to state and local governments, housing authorities, and private nonprofit programs.

For the last several years, the first $150 million of funding has been distributed to state and local governments by formula for the Emergency Shelter Grants program. Most of the rest is distributed through the “Continuum of Care” process. Under this process, homelessness providers in each community work together to describe their services, identify their needs, and rank the projects that they want funded. HUD provides funding based on the quality of the application, the need for homeless services, and the local rankings of individual programs. Funding can be used for permanent and supportive housing, transitional housing, and services. This process covers grants through the Supportive Housing Program, Shelter Plus Care, and the Section 8 Moderate Rehabilitation Single-Room Occupancy program.

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