Housing PLUS Act Allows Sobriety Requirements for Federal Homeless Aid, Mandates 50% Funding for Wraparound Services

The Housing Promotes Livelihood and Ultimate Success Act of 2025, or the Housing PLUS Act, is changing the rules of the road for organizations receiving federal money to address homelessness. This isn't just bureaucratic shuffling; it directly impacts who gets housing assistance and under what conditions.

The Fine Print on Federal Funding

This bill focuses on the Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) funds, which are the main federal dollars distributed to local groups helping people experiencing homelessness. Historically, there’s been a push for “Housing First” models, which prioritize getting people into stable housing immediately without preconditions. This bill explicitly pivots away from that strict interpretation. Under the new rules (SEC. 2), HUD cannot deny or limit funding to a grantee just because they require supportive services—like mandatory counseling, job training, or addiction treatment—or set prerequisites for housing access, such as requiring sobriety or drug-free status. This provision also ensures that faith-based organizations aren’t excluded from applying for these funds.

The Catch: Conditions and Consequences

This change means that programs can now legally screen applicants based on their willingness or ability to meet certain requirements. For the person trying to get off the street, this is a major shift. If you are struggling with substance use, a CoC-funded program can now legally tell you that you must be sober to move in, or that you must attend mandatory job training sessions to stay housed. While the intent might be to ensure people get the help they need, the practical effect is that the most vulnerable individuals—those currently unable to meet sobriety or service requirements—could be screened out and left without access to the very housing assistance the funds are supposed to provide. This creates a high barrier for people who desperately need shelter before they can even begin addressing other issues.

The Mandatory Service Set-Aside

On the funding side, the bill mandates a significant shift in how the money is distributed. At least 50 percent of the CoC funds available each year must go to organizations that provide or offer access to these “wraparound services.” This is a huge win for organizations that specialize in intensive case management, mental health support, and job readiness training, ensuring that half of the federal pot is dedicated to programs that don't just provide a roof, but also integrated support.

Accountability Check-In

To keep tabs on these changes, the bill requires the Secretary of HUD to submit a written certification to Congress (specifically the House Financial Services and Senate Banking Committees) within 180 days after the end of every fiscal year. This certification must confirm that HUD has complied with both the rule allowing prerequisites and the 50 percent funding set-aside for wraparound services. While this adds a layer of accountability, it relies on the Secretary’s own certification rather than an independent audit, which might not catch subtle ways that prerequisites could be used to exclude the most difficult-to-serve populations.