A federal report from the U.S. Department of Housing and Urban Development (HUD) shows that homelessness in the United States fell by 3.3% last year. This marks the first natiionwide decrease in the number of people experiencing homelessness since 2016.

The 3.3% nationwide dip and the 745,652 total

The U.S. Department of Housing and Urban Development reported that an estimated 745,652 people were homeless at the time of the count. According to the U.S. Department of Housing and Urban Development, this data was released to Congress on Friday following an unexplained delay in the reporting cycle.

While the one-year decline represents a significant shift in the recent trend, the Trump administration has chosen to focus on a much larger figure. the administration highlighted that homelessness has actually increased by 27% nationwide since 2013, using this long-term growth to argue that current federal strategies are failing to address the scale of the crisis.

Scott Turner’s push to end "Housing First"

HUD Secretary Scott Turner is leading an effort to dismantle the "housing first" model, which prioritizes immediate placement in permanent housing without preconditions. Turner stated that the current status quo has failed to meaningfully reduce homelessness and has instead resulted in crisis levels of people living on the streets.

The Trump administration intends to replace this approach with programs that prioritize recovery and self-sufficiency, specifically requiring individuals to maintain sobriety to qualify for housing. This policy shift is also accompanied by attempts to redirect federal funds away from permanent housing solutions and toward temporary shelter options.. The National Homelessness Law Center, through spokesperson Jesse Rabinowitz, has criticized this move, arguing that recent progress is a direct result of Biden-era funding for housing and support services.

Illinois and Hawaii lead the 44% and 41% declines

State-level data reveals significant variations in how homelessness rates changed over the last year. Illinois reported the most dramatic improvement with a 44% decrease, followed closely by Hawaii with a 41% drop. Other states seeing notable declines include Florida at 11% and New York at 8%.

California also saw progress, particularly regarding the most vulnerable populations. In California, 17 different communities reported a reduction in the number of people classified as "chronically homeless." Specifically, Los Angeles County reported 2,394 fewer individuals who have lived with a disability while experiencing homelessness for a year or longer.. Local officials attributed these successes to improved street outreach and more efficient systems for matching people with available housing units.

The missing counts from 14 California continuums of care

The accuracy of the new federal data remains a subject of debate due to gaps in local reporting. In California, 14 of the state’s 44 "continuums of care" failed to conduct a count last year, forcing HUD to rely on 2024 data for those specific areas. This lack of recent data, combined with the fact that point-in-time counts are often considered undercounts, leaves some uncertainty regarding the true scale of the decline.

Significant questions also remain regarding the administration's claims about immigration policy. While the Trump administration sgugested that decreases in California were attributable to changes in sanctuary cities, as the report states, the full HUD document does not mention sanctuary cities in relation to California. The report only notes that some communities in New York and Illinois attributed their declines, in part, to changes in federal immigration policy.