Homelessness in the United States remains one of the most urgent social issues of our time. Rising housing costs, gaps in mental health services, and uneven access to resources have left more than half a million people without stable housing on any given night. As we move through 2025, federal policies are shaping the national conversation on how best to respond.
Two dominant approaches define the current debate: Housing First and treatment-first models. Both strategies have passionate supporters, and both influence federal and state decision-making. Alongside these models, new federal orders and funding allocations are shifting how communities address homelessness.
In this blog, we will break down the latest developments in U.S. homelessness policy in 2025, explain Housing First and treatment-first models, and examine what these choices mean for individuals, nonprofits, and communities across the country.
What Federal Homelessness Policy Looks Like in 2025
The federal government plays a pivotal role in setting the tone for homelessness response. Agencies such as the Department of Housing and Urban Development (HUD) and the U.S. Interagency Council on Homelessness (USICH) coordinate funding, issue directives, and influence how localities implement programs.
In 2025, recent federal orders on homelessness have emphasized accountability, transparency, and outcomes. HUD’s Continuum of Care (CoC) funding remains the largest source of federal dollars for local homeless services, and communities are being asked to show measurable progress on reducing unsheltered homelessness.
At the same time, policymakers are responding to growing concerns about encampments, addiction, and public safety. Some states and cities have leaned on stricter regulations, while federal leaders continue to highlight Housing First policy as the evidence-based standard. This tension between approaches has created a complicated policy landscape, one that requires balancing public health, housing access, and community safety. For a deeper dive into the government’s role, see federal homelessness resources from HUD.
Housing First: The Federal Priority
Housing First is the approach most often championed by federal agencies and advocates. The model is simple: provide immediate access to housing without requiring sobriety, employment, or program compliance first. Supportive services are then offered voluntarily to help individuals maintain stability.
Research shows Housing First can reduce chronic homelessness and improve housing retention. It has been adopted widely in states like Utah and California, with varying levels of success depending on resource availability and program quality.
Supporters argue that housing is a basic human right, and that people cannot effectively address mental health or addiction while living on the street. Evidence from the Substance Abuse and Mental Health Services Administration (SAMHSA) supports its effectiveness in improving outcomes for people with co-occurring disorders.
However, critics argue that Housing First is not a one-size-fits-all solution. Some point to cities like Los Angeles, where despite large investments in Housing First, homelessness continues to rise due to affordability crises and insufficient housing stock.
Treatment-First Models: An Alternative Approach
While Housing First dominates federal guidance, treatment-first or “staircase” models still influence policy debates. These models require individuals to participate in treatment programs, demonstrate sobriety, or meet certain requirements before securing permanent housing.
Proponents of this approach argue that stability requires accountability. They believe that offering housing without requiring treatment risks perpetuating cycles of addiction and relapse. Some municipalities have reintroduced treatment-first pilot programs, especially in areas where public frustration with encampments has reached a breaking point.
The challenge lies in balancing compassion with accountability. Treatment-first programs may work for individuals ready to engage in structured recovery, but they can exclude those unwilling or unable to meet conditions upfront. Critics argue this approach risks leaving the most vulnerable without options. For more on this debate, see analysis from the National Low Income Housing Coalition (NLIHC).
Comparing Housing First and Treatment-First
Both models aim to reduce homelessness but use different paths.
- Housing First: Prioritizes immediate housing, voluntary services, and harm reduction.
- Treatment-First: Requires engagement in treatment or sobriety before accessing permanent housing.
Evidence leans toward Housing First for long-term stability, but treatment-first still has a role in some communities. Policymakers in 2025 are increasingly talking about hybrid models, blending immediate housing access with stronger incentives for treatment participation.
Affordable Housing and Federal Orders
No policy model can succeed without sufficient housing stock. Affordable housing shortages remain the single largest driver of homelessness. In 2025, federal orders have sought to increase funding for Low-Income Housing Tax Credits, expand Housing Choice Vouchers, and push for new construction in high-cost areas.
At the same time, executive directives are encouraging better coordination between housing policy and healthcare policy. The integration of supportive services with affordable housing is becoming central to federal strategy. Reports from the Urban Institute show how these combined strategies improve stability and reduce overall system costs.
For examples of how advocacy and nonprofit solutions complement federal policy, visit Cherry Willow’s Apparel.
The Role of Local Governments and Nonprofits
Federal orders set the stage, but local governments and nonprofits do most of the heavy lifting. Cities like Houston and Minneapolis have used coordinated entry systems and strong nonprofit partnerships to drive measurable reductions in homelessness.
Nonprofits also play a key role in experimenting with hybrid models. Some organizations combine rapid rehousing with mandatory case management, while others create treatment-oriented transitional housing as a bridge to permanent placement.
Partnerships with brands and community organizations, like those fostered by Cherry Willow Apparel’s shop, further expand awareness and funding. Advocacy fashion campaigns, benefit concerts, and merchandise sales provide alternative revenue streams that supplement government dollars.
The Politics of Homelessness in 2025
Homelessness is not only a social issue but also a political flashpoint. Federal leaders face pressure from both sides: advocates pushing for expanded Housing First programs, and critics demanding stricter accountability measures.
Election cycles and media coverage heavily influence policy direction. In some states, politicians frame homelessness as primarily a public safety concern, while in others it is approached as a public health crisis. This divide creates inconsistent experiences for people experiencing homelessness depending on where they live.
Public perception is another driver. Surveys from Pew Research Center show that many Americans believe addiction and personal responsibility are primary causes of homelessness, while data indicates that housing costs and systemic barriers play larger roles. Bridging this gap in perception is essential for sustainable policy.
How These Policies Affect People Experiencing Homelessness
Behind the debates and funding allocations are real people. For someone living on the street, the difference between Housing First and treatment-first is not abstract policy — it is the gateway to stability or another barrier.
- Under Housing First, an unhoused person can receive housing quickly and then choose whether to engage with services.
- Under treatment-first, that same person may be required to enter detox or commit to a program before gaining access to housing.
Both paths can lead to stability, but both can also leave gaps. This is why advocates emphasize the importance of flexible, person-centered approaches rather than rigid adherence to one model.
FAQs
How many people are homeless in the U.S. in 2025?
HUD estimates show more than 600,000 people experiencing homelessness, with unsheltered homelessness at record highs. See the HUD Exchange Homelessness Data for up-to-date reports.
What is Housing First, and does it work?
Housing First provides immediate housing without preconditions. Research from SAMHSA shows it improves housing stability, reduces chronic homelessness, and lowers healthcare costs.
What are treatment-first models?
Treatment-first models require sobriety or program participation before accessing housing. For more on these approaches, read NLIHC’s commentary on homelessness interventions.
What federal orders affect homelessness policy in 2025?
Federal directives emphasize accountability for results, funding for affordable housing, and integration of healthcare and housing services. Urban Institute reports offer in-depth policy analysis.
How can nonprofits and communities help?
By partnering with government agencies, piloting hybrid models, and engaging the public through advocacy, education, and community support. See Cherry Willow’s page for examples of grassroots action.
How can individuals support solutions to homelessness?
Donating to nonprofits, advocating for affordable housing policy, purchasing cause-based merchandise through outlets like Cherry Willow Apparel’s shop, and volunteering locally are all effective ways.
Final Thoughts
The landscape of U.S. homelessness policy in 2025 reflects both progress and tension. Federal orders continue to prioritize Housing First, while treatment-first advocates push for accountability. Meanwhile, the urgent need for affordable housing remains the biggest obstacle to reducing homelessness nationwide.
For people experiencing homelessness, the stakes could not be higher. Each policy decision affects whether they can access housing, treatment, and support. The path forward likely involves flexibility — a combination of Housing First principles, treatment options, and large-scale investment in affordable housing.
As communities, nonprofits, and individuals, we all have a role to play. By understanding these models and engaging with the issue, we can move closer to a future where housing stability is achievable for everyone.
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