Federal Funds Now Authorized for 'Safe Parking' Sites: What It Means for Vehicle Homelessness

This bill, officially titled the Naomi Schwartz and Susan Rose Safe Parking Act of 2025, makes a key change to how federal money can be used to address homelessness. Essentially, it updates the rulebook for the Emergency Solutions Grant Program (ESG) to officially allow states and localities to spend those funds on "safe parking" operations.

Think of ESG money as the federal government's primary emergency fund for getting people off the streets and into housing. Until now, using that money to set up and run secure overnight parking lots for people living in their cars or RVs was a gray area. This Act clears up that confusion, specifically amending the McKinney-Vento Homeless Assistance Act to make safe parking an approved activity. This means local providers can now use federal dollars to cover the real costs of running these sites—maintenance, insurance, utilities, and staffing.

More Than Just a Parking Spot

Crucially, the bill also adds a formal definition of "safe parking" into the federal code, and it’s not just a free overnight lot. The law defines it as a secure location for homeless individuals living in vehicles that must actively connect those individuals with re-housing services and other supportive help. For someone working two jobs and living out of their minivan, this isn't just about safety; it’s about having a stable place to sleep while actively working with a case manager to find a permanent apartment. The funding is specifically for transitional support, not permanent encampments.

The Real-World Impact on the Ground

For many communities, the number of people living in vehicles—from beat-up sedans to older RVs—has spiked due to rising rents and stagnant wages. This law provides a structured, funded way for cities to respond. Imagine a local non-profit that wants to convert an unused church parking lot into a safe parking site. Before this Act, they might have had to scramble for private donations to pay for liability insurance or a portable restroom. Now, they can apply for ESG funds to cover those operational costs, ensuring the site is safe, clean, and actually connected to the services that help people move forward.

The Trade-Off: Who Pays?

While this is a clear benefit for the growing population of vehicle-homeless individuals, it’s important to note where the money is coming from. ESG funds are a finite resource already used for things like emergency shelters, rapid re-housing programs, and homelessness prevention. By making safe parking an eligible activity, the bill essentially introduces a new competitor for those existing dollars. State and local administrators will have to decide how much of their ESG allocation to divert to safe parking versus traditional shelter beds or rental assistance. The risk here is that if a large chunk of money shifts to supporting vehicle-homelessness, other critical programs might see a squeeze. However, the overall goal remains beneficial: providing a safer, more stable step toward permanent housing for a vulnerable group.