News Summary
New York’s homeless service sector is in crisis due to uncertain federal funding amidst a government shutdown. Advocates are urging for $3.3 billion in funding for supportive housing as organizations face potential cuts that could jeopardize critical services. Strict new HUD guidelines and impending expiration of contracts compound the urgency, with many programs at risk of halting support for vulnerable individuals. As homelessness rises, particularly in Albany County, initiatives to address mental health and addiction are being implemented, emphasizing the need for sustained funding to combat this growing issue.
New York is facing significant challenges in its homeless service sector due to federal uncertainty, which is exacerbated by the ongoing government shutdown and changes in federal spending plans. CARES of NY, which operates in 37 counties across the state, has reported an urgent crisis that may threaten the sustainability of essential homeless services.
The immediate concern revolves around the funding for homeless service organizations, with advocates urging for $3.3 billion aimed at permanent supportive housing in the final continuing resolution. However, proposed modifications from the Department of Housing and Urban Development (HUD) could potentially slash this funding to as low as $1.1 billion. Organizations are particularly anxious as some of their housing projects are set to expire soon, with plans for providing support to vulnerable individuals commencing in February.
Should funding decisions be delayed, there are fears that individuals could lose access to crucial housing and support services. Many permanent supportive housing contracts for various organizations are set to conclude by January 31, which means there is little time left to secure future financial assistance before the risk of losing essential rent and support provisions arises on February 1.
To add to the complexity, HUD has introduced new guidelines that organizations must follow when submitting their funding applications in an effort to secure aid. These guidelines include several stringent requirements, such as prohibitions against urban camping, the need for cooperation with federal immigration enforcement, and the imposition of programmatic necessities like mandatory participation in services such as case management and employment assistance. Additionally, organizations applying for funds must not operate drug injection sites or promote harm reduction activities.
According to HUD’s mandates, a minimal percentage of program participants should experience a return to homelessness within a 24-month period, and compliance with the Sex Offender Registration and Notification Act (SORNA) is obligatory within the applicable jurisdiction. Furthermore, applicants must ensure that their organizations do not promote or endorse discrimination based on race or sex.
The changes in HUD guidelines are a result of Executive Orders issued by the Trump Administration in early 2025, prioritizing the assessment of program success as opposed to the provision of long-term funding without measurable outcomes. This shift has raised significant concerns among various key political figures who have voiced opposition to the proposed cuts in funding, underlining the necessity of focusing on domestic homelessness solutions.
Rep. Mike Lawler (NY-17) and Rep. Paul Tonko have both expressed their discontent over the suggested funding changes, advocating for sustained financial support for the homeless population in New York over foreign aid expenditures. The leadership at CARES of NY echoed these sentiments, calling for the preservation of the Continuum of Care funding model that has been effectively supporting neighborhoods for over a decade.
Statistics reveal that Albany County has witnessed a staggering 27% rise in homelessness from 2020 to 2024. A significant portion, approximately 67%, of the unhoused individuals also contend with mental health challenges. In response, Albany County has initiated a “Street Psychiatry” program intended to deliver onsite mental health and substance abuse services directly to the unhoused community. Furthermore, the Albany County Sheriff’s Homeless Improvement Program (SHIP) is expanding its capacity, adding more than 40 new housing units specifically for women and children. Funding for this initiative comes from a federal grant complemented by contributions from local community organizations.
Historically, the SHIP has maintained a success rate of 74.5% in successfully transitioning individuals into stable, permanent housing. Many participants are referred to this program via law enforcement agencies and substance use treatment centers. Advocates for the homeless continue to press for budget allocations that would expand shelter services year-round while promoting a Housing Access Voucher Program (HAVP).
Homelessness is becoming an increasingly pressing issue in New York, with families and children being notably affected as state budget negotiations continue to seek funding aimed at supporting housing solutions for those in need.
Deeper Dive: News & Info About This Topic
- News10: Albany County Launch Program to Curb Homelessness
- CBS 6 Albany: Lawmakers Support Local Nonprofits
- Times Union: Albany County Jail Housing Program
- Wikipedia: Homelessness in the United States
- New York Times: Albany Mayor Election Insights

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