Trump Administration Dismantles Key Homelessness Agency

Apr. 16, 2025, 8:53 pm ET

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  • The Trump administration has dismantled the U.S. Interagency Council on Homelessness (USICH), a key agency in coordinating federal homelessness policy.
  • This move is part of a broader strategy to shift focus from housing-first approaches to treatment and rehabilitation for homeless individuals.
  • The decision has sparked widespread criticism from homelessness experts and advocates.

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Essential Context

The U.S. Interagency Council on Homelessness, established by Congress in 1987, has been a crucial entity in coordinating federal efforts to address homelessness, particularly among veterans. However, the Trump administration has issued an executive order effectively dismantling the agency, putting all its staff on leave.

Core Players

  • Donald Trump – President of the United States
  • U.S. Interagency Council on Homelessness (USICH) – Federal agency coordinating homelessness policy
  • Robert Marbut – President Trump’s director of USICH, advocate for treatment-first approaches
  • Jeff Olivet – President Trump’s executive director, critic of the administration’s new policy

Key Numbers

  • 1987: Year USICH was established by Congress
  • 13: Current staff members at USICH
  • 18: Allocated full-time staff positions for USICH in fiscal year 2025
  • 770,000+: Estimated number of people homeless in the U.S. as of last year, an 18% increase from 2023

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The Catalyst

The Trump administration’s decision to dismantle USICH is part of a broader strategy to overhaul the federal approach to homelessness. This includes a shift away from “Housing First” policies, which prioritize providing permanent housing to individuals as quickly as possible, and toward a more treatment-focused approach.

“We realized as Housing First came along that if you can move people as quickly as possible into housing and provide really good wraparound supports, they can exit homelessness very successfully,” said Jeff Olivet, President Trump’s executive director.

Inside Forces

The administration’s move is driven by a belief that the current system is inefficient and that treatment for mental health and substance abuse issues should be a precondition for housing. Robert Marbut, President Trump’s director of USICH, has been a key advocate for this approach, arguing that it will help individuals achieve self-sufficiency and end their homelessness.

However, critics argue that this approach is misguided and that the real issue is the lack of affordable housing. “Throwing everybody into treatment programs just isn’t an effective strategy. The real problem is we just don’t have enough affordable housing,” said Donald Whitehead Jr., executive director of the National Coalition for the Homeless.

Power Dynamics

The Trump administration’s actions reflect a significant shift in power dynamics within the federal government’s approach to homelessness. The dismantling of USICH and the reduction in staffing at the Department of Housing and Urban Development (HUD) indicate a strong push toward a more punitive and treatment-focused policy.

Congresswoman Maxine Waters has criticized the move, stating that it is part of President Trump’s broader attack on the social safety net, including Social Security, Medicaid, and fair housing rules.

Outside Impact

The dismantling of USICH and the shift in federal policy are expected to have far-reaching implications for local communities and homelessness services. The reduction in federal funding and the changes in policy priorities could lead to a decrease in the availability of affordable housing and supportive services.

“The gutting of USICH would have a very negative impact on people experiencing homelessness, on communities, and on the federal government’s capacity to respond to homelessness in an effective and strategic way,” Olivet warned.

Future Forces

Looking ahead, the impact of these changes will likely be felt across various sectors. Local governments and nonprofit organizations may struggle to maintain current levels of homeless services due to reduced federal funding and the new policy requirements.

The administration’s plans to clear homeless encampments and impose fines and potential jail time on homeless individuals could further exacerbate the crisis. “Clearing encampments does not end homelessness; it disrupts relationships between outreach workers and residents,” said Kate Coventry, deputy director of legislative strategy for the DC Fiscal Policy Institute.

Data Points

  • March 14, 2025: Trump issues executive order to eliminate non-statutory components of USICH
  • $66 million: Annual funding received by the King County Regional Homelessness Authority from the federal government
  • 60,000: Additional people at risk of homelessness due to the early release of emergency housing voucher funding
  • 50%: Reduction in HUD staffing, affecting funding and program administration

The dismantling of the U.S. Interagency Council on Homelessness marks a significant turning point in the federal government’s approach to addressing homelessness. As the administration pushes forward with its new policy, the consequences for homeless individuals, local communities, and the broader social safety net are likely to be profound.