Housing First helps people find permanent homes in Detroit − but HUD plans to divert funds to short-term solutions

The U.S. Department of Housing and Urban Development (HUD) revised its Continuum of Care funding allocation in November 2025, reducing support for permanent subsidized housing in favor of short-term solutions. This shift, described by HUD as moving from "housing first" to "treatment first," threatens Detroit's efforts to combat homelessness, potentially forcing thousands back onto the streets. While a federal judge temporarily paused the changes, HUD intends to implement them in future rounds, raising concerns among advocates and researchers that this could destabilize vulnerable populations and undermine proven strategies for long-term housing stability. Detroit, which received $40 million last year, could see its permanent supportive housing funds drastically cut, jeopardizing its homelessness response system.