CA Alliance Statement on Federal Cap to Permanent Housing Funding

Statement from Pete Weldy, CEO, California Alliance of Child and Family Services

Sacramento, Calif — California Alliance members work every day to break the foster care-to-homelessness pipeline. HUD's changes to Continuum of Care funding threaten to undo years of that work, destabilizing the families we serve.

The Administration’s 30 percent cap on permanent housing funding means California will lose an estimated $409 million in federal housing funds, and over 25,000 people* could be pushed onto the streets. The pressure on our already overwhelmed affordable housing supply will be catastrophic for young people aging out of foster care and families at risk of child welfare involvement.

Permanent supportive housing isn't just about four walls and a roof – it's about integrated behavioral health services and healthcare access and the support of the community, which are the very supports that keep families together and help young people build independent lives. The Administration’s action contradicts research demonstrating that permanent supportive housing increases stability and reduces homelessness.

We stand with the attorneys general, non-profit organizations, and local governments challenging this harmful policy in court.