New Federal Direction Frees Cities to Ditch Housing First, Pursue Real Solutions

SEATTLE, WA — “Federal reforms have finally created space for local leaders to put treatment and recovery back at the center of homelessness policy,” says Discovery Institute President Steve Buri. “Real compassion means helping people reclaim stability and dignity, not leaving them trapped in addiction and illness without a path to restoration.”

Following a newly-released reformed funding package from the Department of Housing and Urban Development (HUD), Discovery Institute published an essential policy brief calling on local governments, Continuums of Care (CoCs), and service agencies to leverage these new federal reforms and make treatment and recovery central to local homelessness solutions.

The brief outlines how “Housing First” and “Harm Reduction” policies failed the homeless by misdiagnosing the crisis as primarily a housing shortage rather than a crisis driven by untreated mental illness and addiction. Instead, Discovery Institute recommends treatment-centered, recovery-focused systems that promote personal restoration and long-term self-sufficiency.

The Trump administration’s prioritization of treatment- and recovery-based models has ended the “Housing First” and “Harm Reduction” mandates that dominated federal policy for more than a decade and, according to federal data, coincided with a sharp rise in unsheltered homelessness nationwide. This shift in federal focus has opened new opportunities for local jurisdictions to restore public order and promote recovery.

The brief urges policymakers and service providers to redefine success: measure progress by the number of individuals who achieve recovery and independence, not by the number of taxpayer-funded housing vouchers distributed. It emphasizes that real compassion involves helping people regain stability, employment, and dignity through treatment and structured recovery programs.

Discovery Institute is a non-profit, non-partisan organization focused on advancing a culture of purpose, creativity, and innovation. Through its Fix Homelessness initiative, the Institute offers innovative research and compassionate solutions to the growing crisis of homelessness, addiction, and mental illness facing many American cities.

Media Contact:
Caitlin Cory
Communications Coordinator
Phone: (434) 329-0785
Email: ccory@discovery.org