HUD Secretary-Designate Turner Signals Major Policy Reversal, Shifting Funding from "Housing First" to Transitional Programs

Washington D.C. – The Department of Housing and Urban Development (HUD), under the incoming leadership of Secretary-designate Scott Turner, is poised for a significant policy overhaul, redirecting federal funding away from the "Housing First" model towards transitional housing programs. This strategic shift, confirmed by recent announcements, marks a departure from previous approaches to addressing homelessness.

The new policy framework, attributed to the Trump administration, significantly limits the allocation for Permanent Supportive Housing (PSH) projects, which historically received the majority of Continuum of Care (CoC) funds. According to Politico and LeadingAge NY reports from November 2025, nearly 90% of CoC funding was previously earmarked for PSH units, a figure now capped at 30%. This substantial reallocation prioritizes transitional housing with mandatory work and service requirements.

Scott Turner, who President-elect Donald Trump announced in December 2024 as his nominee for HUD Secretary, articulated the administration's new direction via social media. > "Biden’s HUD only sent 1% of CoC funding to transitional housing programs — instead funding “Housing First” projects which simply warehouse our vulnerable neighbors," Turner stated in a tweet. He added, "We are correcting course and funding programs that put people onto a life of self-sufficiency."

This policy change reflects a broader critique of the "Housing First" model, which provides immediate housing without preconditions like sobriety or employment, offering voluntary supportive services. In contrast, transitional housing programs typically offer time-limited shelter and require participation in services aimed at fostering self-sufficiency, employment, and long-term stability.

The move has drawn varied reactions from homelessness advocates and service providers. While proponents of transitional housing emphasize accountability and pathways to independence, organizations like LeadingAge NY have expressed concerns, noting that PSH is widely accepted as effective for chronically homeless individuals, particularly older adults and those with disabilities. The shift is expected to impact approximately 170,000 individuals currently in PSH units, according to analyses.