Prevent Homelessness Act of 2025
- Bill Number
- H.R. 2206
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-03-18: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-05-10T08:05:44Z
AI-Generated Summary
Purpose of the Legislation
The Prevent Homelessness Act of 2025 aims to prevent homelessness among extremely low-income renters and homeowners by creating a dedicated fund for short-term emergency financial assistance. This help targets families facing sudden financial hardships, such as job loss or health crises, to cover essential housing costs and stabilize their living situations.
Key Provisions
- Establishment of the Housing Stabilization Fund: The Secretary of Housing and Urban Development (HUD) will create and manage the fund through its Office of Special Needs Assistance Programs. The fund will provide annual grants to "continua of care" (collaborative local groups that coordinate homeless services in specific geographic areas).
- Eligibility for Assistance: Grants support emergency housing programs that aid extremely low-income families (those earning below 30% of the area's median income) and very low-income families (below 50% of the area's median income). These families must show they cannot afford housing costs due to hardships like job loss, family crises, or unsafe living conditions. Evidence can include eviction notices or utility bills, with flexibility for cases without formal notices.
- Coordination and Requirements: Programs must align with local homeless service systems, such as coordinated entry tools (methods to prioritize those most in need), and operate within the continuum of care's area. HUD can set additional rules.
- Eligible Uses of Funds: Assistance covers short-term housing needs, including:
- Rent payments or arrears (up to 8 months in the past 12 months, not exceeding local market rates).
- Mortgage payments or arrears (similar 8-month limit).
- Utility bills.
- Home repairs for habitability (e.g., fixing roofs or windows).
- Services like counseling for mental health, domestic violence, or job placement; legal aid for eviction prevention; security deposits; and other stability aids (e.g., groceries, transportation, or furniture).
- Application Process: Continua of care must apply to HUD with details ensuring proper use of funds; approved applicants receive grants.
- Grant Allocation:
- For fiscal year 2027: All funds distributed via a formula considering local low-income populations, severe housing cost burdens, and homelessness data from HUD's annual Point-in-Time Count.
- For later years: 80% via the formula; 20% through a competition rewarding efficient, innovative programs that target the poorest households, leverage other funds, prevent homelessness, and use problem-solving approaches.
- Funding Authorization: $100 million per year from fiscal years 2027 through 2031, subject to annual congressional appropriations.
- Definitions: Key terms include "continuum of care" (local homeless service collaborators under existing federal law), income thresholds from the U.S. Housing Act of 1937, and references to HUD as the administering agency.
Significant Changes to Existing Law
This bill introduces a new federal program and fund, building on but not altering core elements of laws like the McKinney-Vento Homeless Assistance Act (which funds homeless services) and the U.S. Housing Act of 1937 (which defines income levels). It expands emergency aid beyond traditional homeless shelters to include prevention for at-risk housed families, with specific caps on aid duration and new competitive funding elements not previously mandated for such programs.
Potential Impacts
- On Government Agencies: HUD gains responsibility for fund administration, grant approvals, formula development, and regulations, potentially increasing workload and requiring new data collection or partnerships with local entities. Congress must appropriate funds annually.
- On Citizens: Extremely and very low-income families could avoid eviction, foreclosure, or homelessness through targeted financial relief, improving housing stability and access to supportive services. This may reduce strain on local shelters and welfare systems.
- On International Relations: No direct impacts, as the bill focuses on domestic housing policy.
Main Stakeholders Affected
- Primary Beneficiaries: Extremely low-income and very low-income renters and homeowners facing financial hardships.
- Service Providers: Continua of care, local agencies, nonprofits, and organizations delivering the assistance programs.
- Government Entities: HUD (administration and oversight); state and local governments (coordination with existing homeless services).
- Others: Legal aid providers, counselors, and repair services that may receive program referrals.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill integrates with existing federal housing laws without overriding them, emphasizing evidence-based targeting to ensure fair distribution. Limits on aid duration (e.g., 8 months) prevent long-term dependency while allowing flexibility in hardship verification.
- Constitutional: No apparent challenges; it aligns with Congress's spending power under Article I to address social welfare, promoting equal protection by aiding vulnerable low-income groups without discrimination.
- Political: Sponsored by bipartisan representatives (Democrats Lieu and Jackson, Republican Mullin), suggesting cross-party support for homelessness prevention. It could influence future housing budgets and debates on federal versus local roles in social services, potentially setting a model for expandable anti-poverty programs if successful.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Mullin, Kevin [D-CA-15], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Correa, J. Luis [D-CA-46]
Recent Actions
- 2025-03-18: Referred to the House Committee on Financial Services.
- 2025-03-18: Introduced in House
- 2025-03-18: Introduced in House
Bill Versions
- Prevent Homelessness Act of 2025 — issued 2025-03-18 — PDF (10 pages)