SAN JOSE, Calif. (KGO) — Santa Clara County is racing to fill a multimillion-dollar gap in federal housing aid after the Trump administration announced plans to slash funding for permanent supportive housing programs.
On Monday, U.S. Representatives Sam Liccardo and Zoe Lofgren penned a letter to Housing and Urban Development Secretary Scott Turner, demanding details on how the agency plans to prevent widespread displacement.
Local leaders warn the move could force thousands of people back onto the streets.
“We write with great concern over the recently announced changes to the Continuum of Care program which significantly cuts permanent housing funding for 2026 and disproportionately disadvantages the community who needs the support the most-putting, by some estimates, 170,000 vulnerable Americans at risk of becoming homeless,” the letter states.
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The Continuum of Care program, created in 1987, provides roughly $3.6 billion annually to fund local efforts to combat homelessness. Lawmakers argue that permanent supportive housing has proven more effective than short-term programs that impose work requirements or mandate treatment.
“Instead of cutting a program which has the evidence to support its success, we should be working together to address the causes that leave individuals without the means to support themselves,” the letter says.
The cuts come as homelessness in the U.S. reached record levels in 2024, driven by rising housing costs, inflation and other economic pressures.
Liccardo told ABC7 News his committee will press the administration and seek bipartisan support for legislation to override the decision.
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“What we’ll be doing is certainly pressing this administration,” he said. “And then on my committee, which has oversight for housing, trying to identify those Republicans who are also seeing these severe impacts in their communities and see if we can put together a coalition.”
For families like Alberto Barragan and Kaytana Alvarido of San Jose, the stakes are personal. After two years of homelessness – including a pregnancy and their son’s first year of life without stable housing – the couple moved into an affordable unit on Monday after the press conference.
“This is our home and we’re going to make it the best that it can be, especially for this little guy,” Alvarido said.
ABC7 News reached out to HUD for comment but did not immediately hear back.
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