Category: homelessness

  • How Educated Neoliberals Built the Homelessness Crisis—and Why HUD’s New Cuts Will Make It Worse

    How Educated Neoliberals Built the Homelessness Crisis—and Why HUD’s New Cuts Will Make It Worse

    The US Department of Housing and Urban Development has quietly announced one of the most drastic federal rollbacks in homelessness policy in decades: a massive cut to permanent housing under the Continuum of Care (CoC) program, with more than half of its 2026 funding diverted to transitional housing and compliance-based services. HUD’s own internal estimates warn that up to 170,000 people could lose housing as a result of the shift. For millions of Americans, especially those on the margins, this is not a policy adjustment; it is the beginning of a humanitarian disaster.

    To understand how we arrived here, it is not enough to point at the Trump administration, the ideological crusade against “Housing First,” or the White House Faith Office now shaping federal grantmaking. One must also examine the educated neoliberals who built and normalized the system that made this possible.

    HUD’s policy change overturns decades of federal commitment to permanent supportive housing, an evidence-backed model that dramatically reduces chronic homelessness. The new Notice of Funding Opportunity caps permanent housing at just 30 percent of CoC dollars, down from 87 percent in prior years, while the remainder is funneled toward transitional housing, work or service requirements, mandatory treatment, and faith-based compliance programs. The total funding for 2026 is roughly $3.9 billion across 7,000 grants. That amount, spread across hundreds of thousands of people experiencing homelessness, is barely sufficient to provide minimal assistance, let alone stable housing or the comprehensive services this population needs. One-third of existing programs will run out of funds before the new awards are issued in May, leaving vulnerable individuals exposed to eviction during the harshest months of winter. Ann Oliva, CEO of the National Alliance to End Homelessness and a former HUD official, described the rollout as deeply irresponsible, warning that the administration is setting communities up for failure.

    For decades, U.S. policy has been shaped not just by conservatives but also by a sprawling class of highly educated managers: MBAs, MPPs, JDs, think-tank fellows, foundation executives, nonprofit administrators, and “innovation” consultants. They came from America’s elite universities, fluent in market logic, managerialism, and austerity politics. They preached efficiency, accountability, metrics, and self-sufficiency. Many also personally accumulated wealth, often owning multiple homes, benefiting from investment income, and exploiting loopholes to minimize or avoid taxes. Meanwhile, the programs they manage shrink support for the poor and vulnerable.

    Through their influence, housing became a program, not a public good. Public housing construction largely disappeared, replaced by a grant-driven, nonprofit marketplace controlled by elite professionals. Even the funding allocated for CoC programs, though nominally in the billions, is deliberately minimal. This scarcity forces competition, instability, and suffering among poor people. Nonprofit executives, most of whom depend on federal contracts and foundation dollars, rarely challenge the economic and political structures that produce homelessness. Accountability rhetoric replaced structural change, reframing homelessness as an issue of individual behavior rather than a systemic failure. The academy normalized the idea that poor people should suffer, teaching a generation of managers to prioritize markets, metrics, and “innovation” over human need. This bipartisan, university-trained professional class laid the foundation for the HUD cuts now threatening hundreds of thousands of lives.

    HUD argues that the new model “restores accountability” and reduces the purported waste of Housing First, but decades of research contradict that claim. Permanent supportive housing reduces chronic homelessness, lowers emergency and policing costs, stabilizes people with disabilities, and is cheaper than institutionalization or shelters. Transitional housing with mandatory compliance, on the other hand, repeatedly pushes people back to the streets, disproportionately harms people with disabilities, increases mortality, inflates administrative costs, and creates churn rather than stability. The policy is not a mistake; it reflects the calculated priorities of an elite managerial class whose worldview demands austerity for the poor while allowing them to flourish materially.

    The response in Washington has been striking. Forty-two Senate Democrats warned HUD that the shift violates the McKinney-Vento Act, undermines local decision-making, and rejects decades of federally funded research. Even twenty House Republicans urged careful implementation to avoid destabilizing services for seniors and disabled people. Yet decades of neoliberal policymaking—funded and legitimized by universities, foundations, and think tanks—have already created a system in which poverty and suffering are baked into federal policy. This latest HUD action simply codifies that worldview.

    The crisis unfolding now is not just the product of Trump’s ideological war on Housing First. It is the logical endpoint of decades of privatization, the erosion of public housing, elite consensus around austerity, credentialed managerialism, the nonprofit-industrial complex, the foundation-university revolving door, and the belief—deeply embedded in higher education—that markets and metrics should govern everything. Many of these policymakers and nonprofit executives own multiple homes, refuse to pay taxes, and structure federal policy to ensure the poor remain dependent, unstable, and suffering. The people most directly harmed are those with the least political power: disabled people, elderly tenants, veterans, people with serious mental illness, women fleeing violence, and families trying to survive an economy that no longer works for them. Behind them stands a class of educated neoliberals who built the systems that made this outcome possible, often congratulating themselves for “innovation” while allowing misery to proliferate. This is not failure. This is design.

    Sources:

    • Politico, “HUD to Cut Permanent Housing Funding for Homeless Programs,” 2025.

    • National Alliance to End Homelessness, internal HUD funding documents, 2025.

    • Ann Oliva, National Alliance to End Homelessness, statements to POLITICO, 2025.

    • McKinney-Vento Homeless Assistance Act, 1987.

    • HUD Notice of Funding Opportunity, 2026 Continuum of Care Program.

    • Executive Order: “Ending Crime and Disorder on America’s Streets,” White House, 2025.

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  • Homeless Student Counts in California Are Up. Some Say That’s a Good Thing – The 74

    Homeless Student Counts in California Are Up. Some Say That’s a Good Thing – The 74


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    In Kern County, the first rule in counting homeless students is not saying “homeless.”

    Instead, school staff use phrases like “struggling with stable housing” or “families in transition.” The approach seems to have worked: More families are sharing their housing status with their children’s schools, which means more students are getting services.

    “There’s a lot of stigma attached to the word ‘homeless,’” said Curt Williams, director of homeless and foster youth services for the Kern County Office of Education. “When you remove that word, it all changes.”

    Largely as a result of better identification methods, Kern County saw its homeless student population jump 10% last year, to 7,200. Those students received transportation to and from school, free school supplies, tutoring and other services intended to help them stay in school. For the purposes of this data, the definition of homelessness is broader than the state’s point in time count.

    The trend is reflected statewide. In the latest state enrollment data released last month, California had 230,443 homeless students — a 9.3% increase from the previous year. Some of the increase is due to the state’s ongoing housing shortage, but most of the increase is because of better identification, advocates and school officials said.

    Homeless students face numerous obstacles in school. They have higher rates of discipline and absenteeism, and fare worse academically. Last year, only 16% of homeless students met the state’s math standard, some of the lowest scores of any student group.

    “Schools can’t solve homelessness, but they can ensure the students are safe in the classroom and getting the education they need to get out of homelessness,” said Barbara Duffield, executive director of Schoolhouse Connection, a national homeless youth advocacy group. “That starts with identifying the child who’s homeless.”

    Challenges of counting homeless students

    Under the federal McKinney-Vento Act, schools are required to count their homeless students throughout the school year and ensure they receive services. Homeless students also have the right to stay enrolled in their original school even if they move.

    For many years, schools struggled to identify homeless students. Under state law, schools must distribute forms at the beginning of the school year asking families where they live — in their own homes, in motels, doubled-up with other families, in shelters, cars or outdoors.

    Some schools were less-than-diligent about collecting the form, or reassuring families understood the importance. Often, homeless families were reluctant to submit the form because they were afraid the school might contact a child welfare agency. Immigrant families sometimes feared the school might notify immigration authorities. And some families didn’t realize that sharing quarters with another family — by far the most common living situation among homeless families – is technically defined as homeless, at least under McKinney-Vento.

    A 2021 bill by former Assemblymember Luz Rivas, a Democrat from Arleta in the San Fernando Valley, sought to fix that problem. The bill requires schools to train everyone who works with students — from bus drivers to cafeteria workers to teachers — on how to recognize potential signs of homelessness. That could include families who move frequently or don’t reply to school correspondence.

    The bill seems to have helped. Last year, the state identified 21,000 more homeless students than it had the previous year, even as overall enrollment dropped.

    Still, that’s probably an undercount, researchers said. The actual homeless student population is probably between 5% and10% of those students who qualify for free or reduced-price lunch, according to the National Center for Homeless Education. In California, that would be a shortfall of up to 138,713 students.

    Influx of funding

    Another boost for identifying homeless students came from the American Rescue Plan, the federal COVID-19 relief package. The plan included $800 million for schools to hire counselors or train existing staff to help homeless students. Nearly all schools in California received some money.

    About 120 districts in California won grant money through the McKinney-Vento Act, which last year dispersed about $15.9 million in California to pay for things like rides to school, backpacks, staff and other services. Districts are chosen on a competitive basis; not all districts that apply receive funds.

    But those funding sources are drying up. Most of the pandemic relief money has already been spent, and President Donald Trump’s recently approved budget does not include McKinney-Vento funding for 2026-27.

    The cuts come at a time when advocates expect steep increases in the number of homeless families over the next few years, due in part to national policy changes. Republican budget proposals include cuts to Medicaid, food assistance and other programs aimed at helping low-income families, while the immigration crackdown has left thousands of families afraid to seek assistance. For families living on tight budgets, those cuts could lead to a loss of housing.

    And in California, the shortage of affordable housing continues to be a hurdle for low-income families. Even Kern County, which has traditionally been a less pricey option for families, has seen a spike in housing costs as more residents move there from Los Angeles.

    Joseph Bishop, an education professor at UCLA and co-author of a recent report on homeless students nationwide, said the loss of government funding will be devastating for homeless students.

    “California is the epicenter of the homeless student crisis, and we need targeted, dedicated support,” Bishop said. “Folks should be extremely alarmed right now. Will these kids be getting the education they need and deserve?”

    Better food, cleaner bathrooms

    In Kern County, identification has only been one part of the effort to help homeless students thrive in school. Schools also try to pair them with tutors and mentors, give them school supplies and laundry tokens, and invite them to join a program called Student Voice Ambassadors. There, students can tour local colleges, learn leadership skills and explore career options.

    As part of the program, staff ask students what would make school more enticing — and then make sure the suggestions happen. At one school, students said they’d go to class if the bathrooms were cleaner. So staff improved the bathrooms. At another school, students wanted better food. They got it.

    Williams credits the program with reducing absenteeism among homeless students. Two years ago, 45% of Kern County’s homeless students were chronically absent. Last year, the number dropped to 39% – still too high, he said, but a significant improvement.

    “Without McKinney-Vento funds, the Student Voice Ambassador program would go away,” Williams said. “How will we keep it going? I don’t know.”

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.


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