Federal homeless funding changes leave Las Vegas providers in limbo

Jess Molasky stood proudly inside a modern one‑bedroom unit at Sunhaven, the three‑story, 50‑unit permanent supportive housing complex developed by his firm, Ovation Management, in the eastern Las Vegas Valley. During a recent tour, Molasky expressed enthusiasm for developments like Sunhaven that offer greater stability than short‑term shelters or transitional housing. “How betwixt those 2 are you truly expected to get your beingness together? Like, what, you get a occupation and amended your recognition score, and past get an apartment? It doesn’t truly marque sense,” Molasky said. Sunhaven celebrated its grand opening in February, marking a significant milestone for permanent supportive housing and the Housing First model, which places people experiencing homelessness directly into stable housing without requiring prior employment or sobriety. Yet, as local officials and developers invest in projects such as Sunhaven, the Housing First approach faces new pressure. The Trump administration is seeking to shift federal homelessness funding away from permanent supportive housing—a move providers warn could jeopardize existing programs. On June 1, the U.S. Department of Housing and Urban Development released the funding application for organizations operating within the Continuum of Care, the network that coordinates housing and services and sets local funding priorities. The grants are expected to support programs launching in 2027. According to the National Alliance to End Homelessness, the shift away from Housing First could put at least 97,000 residents of permanent supportive housing units nationwide at risk of losing their homes, including 435 individuals in Nevada. Fuilala Riley, CEO of HELP of Southern Nevada, warned that the change could have devastating consequences for the people her agency serves. “Essentially the backing root that pays their rent — that allows them to stay housed — would be eliminated,” Riley said. ### A shift in federal priorities The Trump administration has criticized Housing First policies, arguing they are ineffective because they do not emphasize personal accountability. Officials contend that federal policy should instead prioritize a “Treatment First” model that mandates rehabilitation and employment compliance before granting long‑term housing assistance. In a June press release, HUD Secretary Scott Turner stated the administration is enacting “necessary reforms” to address a crisis driven by addiction and mental illness that housing alone cannot resolve. “The ‘housing first’ experimentation failed Americans by warehousing the susceptible without results,” Turner said in the release. “This ideology promised to extremity homelessness. Instead, billions of payer dollars were spent portion homelessness accrued to grounds levels.” Nicholas Barr, a professor at the University of Utah College of Social Work, countered that the administration’s stance is flawed, noting that both Republican and Democratic administrations have long supported Housing First as a more effective response to homelessness. “Decades of research have demonstrated just how well it works,” Barr said. A 2021 study by researchers affiliated with the Centers for Disease Control and Prevention found that Housing First programs reduced homelessness by 88 percent and delivered greater health benefits compared with programs that first required mental health and substance‑use treatment. “If someone is unhoused, meaning they’re inactive on the street, it’s just such a traumatic and unstable situation that they’re truly not capable to address different issues, whether that’s physical, mental, or behavioral,” Barr said. ### The push for an alternative approach Nevertheless, some conservative groups have long argued that the federal government should move away from the Housing First model. John Gibbs, director of the Thomas A. Roe Institute for Economic Policy Studies at the Heritage Foundation, said he does not see conclusive evidence that Housing First has reduced homeless