Federal shifts in homelessness funding could upend years of Maryland’s progress, putting thousands of residents at renewed risk of losing stable housing.
In a recent article from The Baltimore Sun, the Maryland Department of Housing and Community Development is flagging concerns about major federal funding changes that could substantially increase homelessness statewide.
The US Department of Housing and Urban Development (HUD) recently announced a shift in its Continuum of Care program, reprioritizing permanent housing resources toward transitional housing and substance abuse treatment programs and capping permanent housing investments at 30% of local applications.
From the Baltimore Sun article:
$46 million in cuts to Maryland’s funding allocation will result in more than 2,400 Maryland households – including 4,300 people and 1,900 children – losing their homes, adding that those people will likely end up homeless again due to a new lack of vouchers, affordable housing or alternatives, said Maryland Department of Housing and Community Development Secretary Jake Day.
For years, Maryland and local partners have relied on a “Housing First” strategy, anchored by permanent supportive housing and evidence-based interventions, to drive a steady decline in unsheltered homelessness. Housing First strategies have helped reduce unsheltered homelessness by 42% and overall homelessness by 28%, according to the Department of Housing and Community Development. The new federal direction, which federal leaders say is intended to address addiction and behavioral health challenges, marks a substantial policy departure.
Local Continuums of Care, which coordinate housing and homelessness services across Maryland’s jurisdictions, will now need to navigate a new competitive grant process with applications due January 14, 2026. Funding awards begin in May. Providers and advocates nationally have raised concerns about the immediate fiscal shock and the potential loss of housing stability for vulnerable residents.
Thousands of Maryland residents experience homelessness each year. State and local leaders continue to push for strategies grounded in evidence, stability, and long-term housing solutions, even as federal funding uncertainties present new challenges for counties and service providers working on the front lines.
