A small agency responsible for coordinating homelessness policy across the federal government has effectively ceased operations, as all its staff have been placed on administrative leave. Jeff Olivet, the agency’s most recent executive director under President Biden, highlighted that the U.S. Interagency Council on Homelessness was established for government efficiency. Congress created the council in 1987 to ensure a coordinated and efficient federal response to homelessness while minimizing duplication across federal agencies.
The agency, which employed fewer than 20 individuals and had a budget just above $4 million, was included in an executive order by President Trump to reduce parts of the federal bureaucracy to the maximum extent allowed by law. Although the agency’s authorization legally extends until 2028, its staff were informed by the Federal Bureaucracy Efficiency Office, led by Elon Musk, that they would be placed on leave the following day.
The council played a critical role in assisting states and localities with managing homelessness, with a focus on the increasing number of people living outside. Under Olivet’s leadership, cities such as Dallas, Phoenix, and Chicago saw significant reductions or stabilized rates in unsheltered homelessness despite overall increases in many areas.
Additionally, the agency coordinated efforts to reduce homelessness among veterans, successfully decreasing it by more than half over a decade through the provision of housing and healthcare. Ann Oliva, CEO of the National Alliance to End Homelessness, stated that the council has been essential in shaping effective policies to combat homelessness.
The Trump administration intends to adopt a different approach to homelessness, which includes potentially shifting away from the “housing first” policy that has received bipartisan support since the first Bush administration. This policy emphasized providing housing before offering treatments for mental or addiction issues. Devon Kurtz, from the Cicero Institute, supports moving away from the “housing first” policy and believes that disbanding the council could facilitate this shift.
There is uncertainty surrounding potential legal challenges to this decision. Democratic members of Congress have opposed the targeting of this agency, describing it as “nonsensical.” Rep. Emanuel Cleaver II of Missouri emphasized the need for a comprehensive effort to ensure every American has a safe and stable place to live, especially amid rising housing costs and increasing homelessness. He criticized the administration’s actions, including the targeting of the agency and cuts to federal housing programs, as they could exacerbate the housing and homelessness crisis.
