WASHINGTON, D.C. — The Department of Housing and Urban Development spent more than a month navigating the longest government shutdown in U.S. history, with Secretary Scott Turner warning that millions of vulnerable Americans were pushed to the brink as federal operations ground to a halt. Now, with the government reopened and a series of major policy announcements underway, HUD is moving to restore services, overhaul homelessness programs, and launch a new national initiative for youth leaving foster care.
Turner said the 43-day shutdown — which ended Wednesday after bipartisan votes in Congress — jeopardized health care financing, froze key housing programs, and threatened the safety of low-income families nationwide.
“For over one month, the Left has held our government hostage,” Turner said earlier in the week. “Each day the shutdown dragged on, the department’s challenges grew, threatening our ability to serve our nation’s most vulnerable neighbors.”
While HUD kept core services operating for the more than four million families relying on federal housing assistance, essential programs stalled. Nearly $2 billion in healthcare-related FHA mortgage applications were put on hold, delaying thousands of beds in care facilities across more than 30 states. Endorsements of FHA-supported reverse mortgages — a critical financial tool for seniors — stopped entirely, creating a backlog growing by 60 cases daily.
Repairs for more than 10,000 homes contaminated by lead hazards were suspended, and new loans through HUD’s Section 184 housing program for tribal communities were frozen. Public Housing Authorities across the country warned they were weeks away from exhausting funds used to maintain buildings, support families, and provide basic safety services.
The shutdown ended Wednesday after the House and Senate approved a funding bill with bipartisan majorities. Turner said HUD will “immediately restore stability and resume full operational capacity.”
HUD Launches $3.9 Billion Homelessness Overhaul
Just one day after the shutdown was lifted, Turner announced $3.9 billion in competitive grants through HUD’s 2025 Continuum of Care program — calling it the most sweeping reform in the program’s three-decade history.
The funding aligns with President Donald Trump’s executive order “Ending Crime and Disorder on America’s Streets” and represents a seismic shift away from the “Housing First” model that dominated federal homelessness spending for years.
Turner said federal policy had devolved into a “self-sustaining slush fund” that renewed grants regardless of performance and steered roughly 90 percent of funds toward Housing First projects, while transitional programs — which HUD says promote long-term self-sufficiency — received less than 2 percent.
“Our philosophy will now define success not by dollars spent or housing units filled, but by how many people achieve long-term self-sufficiency and recovery,” Turner said. “We are stopping the Biden-era slush fund that fueled the homelessness crisis.”
Under the new rules, at least 70 percent of projects must compete for funding — a massive increase designed to force accountability — and the program prioritizes personal responsibility, treatment requirements, and public-safety partnerships with law enforcement. Faith-based providers, often excluded under prior rules, will now be eligible on equal footing.
“This transformative policy reform will break cycles of addiction and drive lasting recovery,” said HHS Secretary Robert F. Kennedy Jr., whose department is partnering with HUD to expand treatment-focused programs.
Melania Trump Unveils National Foster-Youth Initiative
Later Thursday, First Lady Melania Trump joined Turner and Treasury Secretary Scott Bessent to announce a new nationwide effort to support youth transitioning out of foster care — a population at high risk for homelessness, poverty, and instability.
The initiative follows President Trump’s new executive order, “Fostering the Future for American Children and Families,” which coordinates federal agencies, nonprofits, faith-based groups, universities, and private-sector partners in creating educational and employment opportunities for young adults leaving foster care.
“This Executive Order gives me tremendous pride,” the First Lady said. “Our united resolve will foster a thriving future filled with compassion and innovation.”
HUD and Treasury will hold nationwide roundtables with foster youth to shape new financial-literacy and workforce-readiness programs. Initial findings are expected in spring 2026.
The order also calls for:
• creation of a national online resource hub for foster youth;
• expanded access to Education and Training Vouchers;
• new pathways to scholarships and short-term credentialing programs;
• increased support for faith-based child-welfare providers; and
• expanded partnerships to help youth secure housing, employment, and mentorship.
The Office of Personnel Management will open federal internships and early-career roles specifically for young adults who have been in foster care.
More than 20,000 young people age out of foster care each year, and roughly one-quarter experience homelessness within four years, according to federal estimates.
A Post-Shutdown Pivot Toward Expansive Policy Shifts
With funding restored and major initiatives now underway, HUD is entering a period of rapid transition. Turner said the department will move aggressively to clear shutdown backlogs, restore frozen programs, and implement sweeping policy reforms spanning homelessness, housing finance, and youth support.
“Our mission is to empower Americans to achieve independence and stability,” Turner said. “These reforms begin that work in earnest.”
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