The President’s FY27 Budget Would Displace Over 200,000 People from Permanent Housing

President Trump recently released budget recommendations for Fiscal Year 2027. Like the previous year, the Administration urged Congress to eliminate funding for the Continuum of Care (CoC) program, which provides permanent housing to people experiencing homelessness. CoC funds would be shifted to efforts to provide more temporary shelter.

According to the most recently available nationwide data, at least 217,782 people live in permanent housing funded by the CoC program. If the President’s FY27 budget is enacted at the proposed levels, those people would likely lose their homes and return to homelessness – displacing more people than the 2025 Los Angeles fires and approaching the impact of Hurricane Katrina.

The federal government is right to be concerned about the ongoing unsheltered crisis and could invest new resources in emergency shelter. However, it is counterproductive to push formerly homeless people out of permanent housing to fund this need. This will only make homelessness worse. The proposal reflects choices to defund programs that provide permanent housing and services to people with disabilities, seniors, families with children, and veterans in favor of temporary interventions.

As Congress weighs the President’s proposals in the coming months, the Alliance calls on elected leaders to do everything in their power to avoid a needless disaster on homelessness.