Governor Mills Calls on Trump Administration to Rescind New Directive That Will Increase Homelessness

Governor Mills and statewide homelessness leaders sound alarm on new Trump Administration policy that puts 1,200 Maine people at risk of becoming homeless

Governor Janet Mills today called on the Trump Administration to rescind a new directive from the U.S. Department of Housing and Urban Development that puts stable housing for more than 1,200 people in Maine at risk.

Sweeping guidance issued by the U.S. Department of Housing and Urban Development (HUD) late last Thursday will cut funding to states for Continuum of Care programs that help homeless individuals access stable housing. Per HUD's directive, funding for Continuum of Care programs in Maine that provide stable housing will be capped at less than $7 million next year, a sharp reduction from the current allotment of $20.5 million.

Today, Continuum of Care programs support stable housing for more than 1,800 people across Maine -- including families with children, seniors, veterans, people with mental and physical disabilities, and survivors of domestic violence -- many of whom have been residing in stable housing for several years. Under the cap announced by HUD, more than 1,200 of these individuals could lose their housing and become homeless.

The new directive represents a dramatic shift in the federal approach to homelessness, by redirecting funding that has successfully kept vulnerable people in stable housing to already overwhelmed short-term shelters and time-limited transitional housing.

"This cruel change by the Trump Administration will jeopardize housing for 1,200 people in Maine who are likely to wind up back on the streets. It will also increase the demand for General Assistance, and it will drive up costs for cities and towns who will be confronted with a desperate need for more emergency shelters and services," said Governor Mills. "Donald Trump has never had to worry about where he sleeps at night. I will not stand idly by as the President hurts Maine people. I call on the Trump Administration to rescind this needless, misguided directive."

"These programs benefit our communities and help keep people in stable housing and out of our jails and emergency rooms," said Dean Klein, Executive Director of the Maine Continuum of Care. "Changing them so drastically without any exit ramp for the many people across our state who rely on them is not just shortsighted, it is cruel. If nothing changes, the impact of these federal funding reductions will unfortunately be felt for decades."

The new Federal directive stands to increase homelessness in Maine cities and towns, straining the state's network of shelters, jails and emergency rooms, and increasing requests for emergency housing support through local General Assistance programs, further stressing municipal budgets.

Households supported by Continuum of Care programs are now present in 106 Maine communities. In Bangor, housing for more than 350 people is at risk. In Portland, more than 200 people could lose their homes.

In addition, programs to address and prevent youth homelessness, programs that house and support survivors of human trafficking, and programs that help individuals and families who are newly homeless return to stable housing quickly would also face significant cutbacks.

"In Bangor, and across Maine, this shift in funding will put hundreds of people at risk of losing their homes. And it's not just about losing a place with a roof and walls -- it's about losing stability," said Jen Gunderman, Director of Public Health & Community Services for the City of Bangor. "Without long-term housing and the services that come with it, our most vulnerable people are at higher risk for health crises and homelessness."

"These new HUD restrictions will push 60 Maine children and youth out of a safe, stable home every year," said Chris Bicknell, Executive Director of New Beginnings in Lewiston. "This effectively pulls the chair out from under any progress they have made toward building their adult lives, casting them back into homelessness. This is unconscionable. Children in our community and in our state will mark their passage into adulthood with no place to call home."

"HUD's decision to massively cut funding for proven solutions to homelessness, while at the same time the federal government is undermining SNAP benefits and healthcare, is exceptionally cruel. Make no mistake: HUD's proposed changes will increase homelessness in our state," said Erin Kelly, Senior Director of Social Work at Preble Street. "It will most certainly increase the number of people who are unsheltered and living outside on our streets, and it will increase the strains on our communities and emergency services like police and hospitals."

Of the individual programs funded by Maine's Continuum of Care grant, the largest is the Maine Department of Health and Human Services' (DHHS) Permanent Supportive Housing Program, which provides housing vouchers to 1,270 people with disabilities and their families, while also connecting them to services to keep them successfully housed, such as treatment for substance use and mental health disorders. Under the new cap proposed by HUD, DHHS could no longer serve two-thirds of those individuals.

The HUD directive follows an executive order the Trump Administration issued in July that seeks to leverage federal funding to push states toward institutionalizing people experiencing homelessness, including through involuntary commitment.