A Nation on the Brink: Why Defunding USICH, HUD, and SAMHSA Will Catapult Homelessness to Crisis Levels
Heather Tidwell
Education Disruptor, teaching the next generation of leaders how to be active members of the community in which they live, work, and play.
Homelessness in America has long been a deeply complex challenge, but for the first time in years, we are at risk of undoing hard-fought progress. The potential shutdown of the United States Interagency Council on Homelessness (USICH), combined with severe funding cuts to HUD and SAMHSA, could plunge the country into a homelessness crisis unlike anything we’ve seen in decades.
We know what works. We’ve seen it in action. But without federal leadership, coordination, and funding, the entire system will collapse into fragmentation, inefficiency, and worsening public health outcomes.
This isn’t just a bureaucratic issue—it’s about real people, real communities, and real consequences.
The Proven Impact of USICH: A Coordinated Strategy That Worked
USICH was established in 1987 under the McKinney-Vento Homeless Assistance Act to coordinate 19 federal agencies toward a singular mission: ending homelessness. Its impact has been measurable, transformative, and undeniable.
What USICH Achieved: The Data Tells the Story
?? 45% Drop in Veteran Homelessness Since 2007 – USICH’s coordination between HUD and the VA streamlined resources, leading to dramatic reductions in veteran homelessness.
?? Encampment Strategies That Reduced Unsheltered Homelessness – USICH developed federal guidance for humane, effective encampment resolutions that cities like Houston used to house 25,000+ people.
?? A National Plan That Worked: “Opening Doors” (2010-2020) – The first-ever federal strategic plan to prevent and end homelessness, Opening Doors, set clear goals and helped drive a 10% national reduction in homelessness in its first five years.
?? More Than 1 Million People Housed Under Federal Coordination – Programs that USICH championed—like Housing First—proved that stable housing must come first for long-term solutions.
These aren’t just policy achievements—these are human lives changed.
What Happens If USICH Shuts Down?
The loss of USICH means more than just bureaucratic inefficiency. It means:
? $5.5 billion in federal homelessness funding becomes fragmented – Without USICH, there’s no one ensuring that HUD, the VA, and HHS align their efforts effectively.
? Proven strategies lose federal backing – Local governments rely on USICH’s guidance for best practices. Without it, cities may resort to outdated, ineffective methods.
? State and local plans lose a key federal partner – Cities like Houston, Los Angeles, and Salt Lake City, which have made major progress, would struggle to maintain momentum.
? Encampments will grow, and emergency rooms and jails will bear the burden – Unhoused populations will have fewer exit strategies, straining public health and law enforcement systems.
This is not speculation. We’ve already seen what happens when federal homelessness efforts are weakened:
?? During the early 2000s, homelessness rates increased by 20% due to disjointed federal efforts and a lack of strategic coordination.
?? In 2018, when HUD rolled back Housing First initiatives, homelessness rose for the first time in seven years.
The warning signs are clear.
Case Studies: Cities That Will Suffer Without Federal Coordination
??? Houston, TX: A Model That Could Unravel
Houston reduced homelessness by 63% from 2011 to 2020, largely by using USICH-backed strategies like the Housing First approach and coordinated funding from HUD and the VA.
Without USICH: Houston’s ability to align agencies and keep scaling solutions will be severely weakened, potentially reversing the progress made over the past decade.
??? Los Angeles, CA: A City Already Struggling
Despite ambitious efforts, Los Angeles saw homelessness rise by 10% in 2023 due to skyrocketing housing costs. However, USICH’s involvement in the “Home for Good” initiative helped reduce veteran homelessness in the region by 36% since 2010.
Without USICH: Large cities like L.A. will lose federal strategic support, making their already difficult fight against homelessness even harder.
??? Salt Lake City, UT: Losing Ground on a Former Success Story
Salt Lake City was once hailed for effectively ending chronic homelessness in the 2010s, but by 2023, homelessness began rising again as affordable housing shortages worsened.
Without USICH: There will be no federal push to restore proven best practices, and local efforts will lack coordination.
The Bigger Threat: HUD and SAMHSA Budget Cuts Will Make This Worse
USICH’s potential shutdown comes at the worst possible time, as HUD and SAMHSA are already facing massive funding reductions:
?? HUD’s Homeless Assistance Grants face a $168 million cut – This program funds emergency shelters, rapid rehousing, and permanent supportive housing.
?? 32,000 fewer housing vouchers – Low-income families will be left without assistance, leading to more evictions and homelessness.
?? HUD’s Community Development Fund slashed by $3.29 billion – This reduces local governments’ ability to build affordable housing.
?? SAMHSA funding cuts limit mental health services for the homeless – Mental illness and substance abuse are major contributors to homelessness, yet funding to address them is declining.
The Perfect Storm: What We Risk Losing
?? Higher rates of unsheltered homelessness as fewer people access supportive housing.
?? More families, children, and veterans living on the streets with no exit strategies.
?? Overcrowded emergency rooms and shelters as public systems absorb the fallout.
?? Increased crime, addiction, and public health crises as homelessness becomes even more entrenched.
What Needs to Happen Next: A Call to Action
We cannot afford to dismantle our only federal homelessness coordination agency while simultaneously gutting the very funding that sustains housing and mental health programs.
Here’s What Must Happen Immediately:
? Congress must protect USICH and fully fund HUD and SAMHSA’s homelessness programs.
? We must restore the funding needed for evidence-based strategies, such as Housing First.
? Cities and states need continued federal coordination to prevent a crisis-level homelessness surge.
? Public-private partnerships must be expanded to bridge gaps in federal funding.
The Cost of Doing Nothing Is Too High
We have seen what works. When USICH was fully funded, Opening Doors was in place, and HUD programs were aligned, homelessness declined.
When these efforts are dismantled, homelessness rises.
This isn’t a hypothetical future—it’s a predictable reality if we don’t act.
Homelessness isn’t inevitable—it’s a policy choice. And right now, our leaders are making the wrong one.
Let’s demand better.