The "Prevent Homelessness Act of 2025" establishes a Housing Stabilization Fund to provide emergency housing assistance to extremely low-income renters and homeowners through grants to local programs.
Ted Lieu
Representative
CA-36
The "Prevent Homelessness Act of 2025" establishes a Housing Stabilization Fund, managed by the Department of Housing and Urban Development, to provide grants to Continuums of Care for emergency housing assistance programs. These programs will support extremely low-income and very low-income families facing housing instability due to financial hardships. Grants can be used for rent, mortgage, utility payments, housing repairs, and other services that promote housing stability. The fund is authorized to be appropriated $100,000,000 for each fiscal year from 2027 through 2031.
New Bill Proposes $100M Annual Fund Starting 2027 to Prevent Homelessness
Congress is considering the "Prevent Homelessness Act of 2025," a bill aimed at stopping homelessness before it starts by creating a new pot of money called the Housing Stabilization Fund. Managed by the Department of Housing and Urban Development (HUD), this fund would receive $100 million each year from fiscal year 2027 through 2031. The core idea is to provide emergency financial help to extremely low-income renters and homeowners who are hitting a rough patch and risk losing their housing.
More Than Just Rent: What the Fund Covers
This isn't just about covering back rent, though that's included. The bill allows local organizations receiving these funds to offer a pretty wide range of short-term help. Think assistance with rent or mortgage payments (capped at 8 months within a year), catching up on utility bills, security deposits, or even essential housing repairs. What makes it interesting is the flexibility – funds could also cover things that indirectly keep people housed, like mental health services, domestic violence support, job counseling, legal help to fight eviction, or even costs like gas, groceries, or a car repair needed to maintain employment and housing stability. The goal seems to be providing targeted, flexible aid to address the specific crisis pushing someone towards homelessness.
Getting Help Where It's Needed: How the Money Flows
So, how does the money get from DC to someone needing help? The bill directs funds to local "continua of care" – these are basically regional coordinating bodies that already manage homelessness services. Initially (for FY 2027), the $100 million would be distributed using a formula based on factors like the number of extremely low-income families and homeless individuals in an area. After that, 80% would still use the formula, but 20% would be awarded competitively. This competition aims to reward programs that effectively target the lowest-income households, leverage other funding sources, focus on prevention, and use creative problem-solving. This structure tries to balance distributing funds based on need while also encouraging innovative local approaches to keeping people housed.