Funding redirected away from permanent supportive housing could push vulnerable residents into homelessness.

ARLINGTON, Va., Nov. 19, 2025 /PRNewswire/ -- The National Alliance on Mental Illness (NAMI) is deeply alarmed by the U.S. Department of Housing and Urban Development (HUD)'s fiscal year 2025 Continuum of Care (CoC) grant application, which will shift the majority of funding away from permanent supportive housing. This change puts hundreds of thousands of people at risk of losing stable housing, including many people with serious mental illness. That could result in many people losing the essential supports they rely on to stay safe, connected, and well.

Hannah Wesolowski, NAMI's Chief Advocacy Officer, made the following statement:

"Safe, stable housing paired with mental health services is essential for recovery and has helped many people with serious mental illness lead healthier, more fulfilling lives. Permanent supportive housing programs have a history of helping prevent unnecessary hospitalizations and involvement in the criminal justice system while providing the dignity of a home, improving outcomes for individuals, and promoting independence. NAMI is deeply concerned that HUD's recent announcement risks further fueling our nation's homelessness crisis. If we want to address chronic homelessness, this is not the answer for people with mental illness."

Permanent supportive housing provides long-term housing and intensive case management to individuals and families who are chronically homeless or at imminent risk of homelessness, many of whom have a mental illness. It is an evidence-based intervention in which mental health treatment, case management, and wraparound supports are core components, helping individuals manage symptoms, avoid hospitalization, and maintain independence. The recently released FY25 CoC application introduces new policy priorities that may limit permanent supportive housing, with estimates that it could result in 170,000 to 200,000 households losing housing.

"Without stable housing, we know what happens," Wesolowski said. "Individuals with mental illness too often cycle through emergency rooms, inpatient psychiatric units, jails, and homelessness. All people with mental illness deserve to have access to the services and supports, including housing, that helps them get well and stay well. NAMI calls on Congress to recognize what's at stake and protect these proven, life-saving programs, and we urge the Administration to reevaluate this change."

Read NAMI's public policy position on housing as a key social determinant of health. NAMI will continue to fight for all people with mental illness to have access to the services and supports, including housing, that helps them get well and stay well.
The National Alliance on Mental Illness (NAMI) is the nation's largest grassroots mental health organization dedicated to improving the lives of individuals and families affected by mental illness.

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SOURCE National Alliance on Mental Illness (NAMI)