Ending Homelessness Act of 2025
- Sponsor
- Rep. Waters, Maxine [D-CA-43]
- Committees
- Financial Services Committee (primary)
- Last action
- Aug 5, 2025
Bottom line
The bill establishes a federal entitlement to housing assistance and provides billions in new funding to address homelessness, while also incentivizing local policy changes.
What it actually does
This bill significantly expands federal housing assistance programs, aiming to end homelessness in the United States. It phases in an entitlement to Housing Choice Vouchers (HCVs) for eligible families, prohibits housing discrimination based on source of income, and provides substantial direct appropriations for emergency relief grants, outreach services, and the National Housing Trust Fund. It also permanently authorizes key homelessness assistance programs and the United States Interagency Council on Homelessness.
Proponents argue
Supporters argue this bill represents a comprehensive and necessary approach to tackle the national crisis of homelessness by ensuring access to stable housing for all eligible families. They contend that providing housing choice vouchers as an entitlement will drastically reduce housing insecurity, improve health outcomes, and reduce the long-term societal costs associated with homelessness. Proponents also highlight the importance of prohibiting source-of-income discrimination to ensure that federal housing assistance can be effectively utilized.
Opponents contend
Critics may contend that the bill's proposed entitlement program and significant appropriations represent an unsustainable expansion of federal spending, potentially leading to increased national debt and inflationary pressures. Concerns could also be raised about the administrative burden on public housing agencies and the potential for federal overreach into local zoning and housing policies through the use of funding incentives. Opponents might also argue that the bill's approach could distort local housing markets or that alternative, less costly solutions exist.
The bill is moderately complex due to its multiple sections and amendments to existing law, but its table of contents and clear structure make it accessible for an informed reader within the estimated time.
Sec. 2
Expansion of Housing Choice Voucher Program
This section appropriates funds to significantly expand the Housing Choice Voucher (HCV) program. It allocates 500,000 new vouchers in fiscal year 2025 and 1,000,000 additional vouchers in increments of 500,000 each year from 2026 through 2028. These vouchers are specifically for families with incomes not exceeding 50 percent of the extremely low-income limit or extremely low-income families including an SSI recipient, prioritizing those experiencing homelessness, overcrowding, or evictions.
Supporters argue
Supporters argue that this expansion is a critical first step towards addressing the severe shortage of affordable housing and directly combating homelessness by providing immediate rental assistance to those most in need.
Critics contend
Critics may argue that such a rapid expansion could strain the administrative capacity of public housing agencies and that the sheer volume of new vouchers could create logistical challenges in finding available housing units, potentially driving up rents in some areas.
Tradeoffs
The provision balances the urgent need for housing assistance with the administrative and market capacity to absorb a large influx of new vouchers. It prioritizes the most vulnerable populations, but the scale of the expansion could present implementation challenges.
Sec. 3
Entitlement Program for Housing Choice Vouchers
Beginning in fiscal year 2029, this section transforms the Housing Choice Voucher program into an entitlement, meaning all eligible families will be guaranteed assistance. Eligibility expands incrementally: starting with extremely low-income families in FY29, then very low-income families in FY32, and finally all low-income families by FY33. It also mandates the use of Small Area Fair Market Rents (SAFMRs) based on ZIP codes, allows PHAs to project-base more vouchers, and permits voucher funds to be used for security deposits and broker fees. A new administrative fee structure is also mandated.
Sec. 4
Repeal of Ineligibility Criteria for Entitlement Vouchers
Effective October 1, 2027, this section repeals certain ineligibility criteria for applicants and families assisted under the new housing choice voucher entitlement program. Specifically, it amends the United States Housing Act of 1937 and the Quality Housing and Work Responsibility Act of 1998 to remove provisions that could bar individuals from receiving assistance, such as certain criminal history exclusions, for those participating in the entitlement program.
Sec. 5
Prohibiting Housing Discrimination Based on Source of Income
This section amends the Fair Housing Act to explicitly prohibit discrimination based on 'source of income.' It broadly defines 'source of income' to include housing vouchers, federal/state/local housing assistance, social security benefits, court-ordered payments (like child support), trust payments, and other funds like savings or investments. The section also authorizes significant appropriations for fair housing enforcement and a national media campaign to raise public awareness of these expanded rights.
Sec. 6
Funding to Address Unmet Need (McKinney-Vento Subtitle E)
This section establishes a new subtitle in the McKinney-Vento Homeless Assistance Act, appropriating $1 billion annually for fiscal years 2025 through 2029 for emergency relief grants to address unmet needs in jurisdictions with the highest homelessness. Grants are allocated by formula, prioritizing areas with high poverty, housing shortages, overcrowding, and unsheltered/chronically homeless individuals. Collaborative applicants must use at least 75% of funds for permanent supportive housing, adhere to a 'Housing First' model, and are incentivized if local governments adopt policies that promote affordable housing and decriminalize homelessness. An additional $100 million annually is appropriated for outreach grants.
Sec. 7
Housing Trust Fund Augmentation and Tenant Rent Contribution Limit
This section appropriates an additional $1 billion annually for fiscal years 2025 through 2029 to the National Housing Trust Fund. It mandates that for the first five fiscal years, priority for occupancy in units assisted by these funds must be given to homeless persons and households. Crucially, it also amends existing law to ensure that for all rental housing dwelling units assisted by the Housing Trust Fund, a family's contribution toward rent shall not exceed 30 percent of their adjusted income, regardless of other provisions of law.
Sec. 8
Technical Assistance for Health and Housing Systems Alignment
This section provides $20 million to the Secretary of Housing and Urban Development for technical assistance to help states and local organizations integrate and coordinate health care and housing systems. The goal is to align policies and funding between Medicaid programs, behavioral health providers, and housing providers to create supportive housing opportunities. Priority is given to states and localities with the highest numbers of chronically homeless persons and those that have adopted local policies promoting affordable housing.
Sec. 9
Permanent Authorization of Appropriations for McKinney-Vento Homeless Assistance Act Grants
This section amends the McKinney-Vento Homeless Assistance Act to provide a permanent authorization of appropriations for grants under the Act. Instead of requiring annual reauthorization or specific dollar amounts each year, it states that "such sums as may be necessary" are authorized to be appropriated for each fiscal year to carry out the title.
Sec. 10
Permanent Extension of United States Interagency Council on Homelessness (USICH)
This section repeals section 209 of the McKinney-Vento Homeless Assistance Act, which previously set a sunset date for the United States Interagency Council on Homelessness (USICH). By repealing the sunset provision, the bill makes USICH a permanent federal entity.
Sec. 11 & Sec. 12
Eligibility of Private Nonprofit and Faith-Based Organizations for Funding
These sections clarify that private nonprofit organizations, including faith-based organizations, are eligible for assistance made available or authorized by this Act and its amendments. They explicitly state that an entity's status as faith-based cannot be a basis for discrimination in determining eligibility for funding.
Sec. 14
Funding Priority for Decriminalizing Homelessness
This section mandates that in selecting entities to receive funds authorized or made available by this Act, the Secretary of Housing and Urban Development shall provide priority to entities serving areas where local governments have adopted policies that decriminalize homelessness.
Mandates the use of Small Area Fair Market Rents (SAFMRs) for Housing Choice Vouchers, established by the Secretary for ZIP Code areas, effective for fiscal year 2025 and each fiscal year thereafter, except for metropolitan statistical areas with a vacancy rate of 4 percent or less.
Sec. 3(g)
Why it matters:This is a standard legislative practice for amending existing statutes. While technical, the policy change is significant.
Case for: Proponents argue that SAFMRs better reflect local housing costs, allowing voucher holders to access a wider range of neighborhoods, including those with better opportunities, and reducing housing segregation. This helps deconcentrate poverty and increases housing choice.
Case against: Critics sometimes argue that implementing SAFMRs can be administratively complex for Public Housing Agencies (PHAs) and may lead to reduced housing options in some areas if landlords are unwilling to accept lower voucher values in certain ZIP codes. However, the exception for low-vacancy areas mitigates some of these concerns.
Estimated impact: This provision will fundamentally change how HCV subsidy amounts are calculated in most metropolitan areas, potentially shifting where voucher holders can afford to live and influencing rental market dynamics.
Prohibits any of the funds made available for the Housing Choice Voucher entitlement program (Sec. 3) or the incremental voucher expansion (Sec. 2) from being used under, to carry out, or otherwise in connection with the Moving to Work (MTW) demonstration program.
Sec. 3(k)
Why it matters:This is a specific policy directive that limits the flexibility of certain PHAs, potentially to ensure uniform application of the new entitlement program's rules rather than allowing MTW agencies to experiment with these new funds.
Case for: Proponents argue that this ensures the new entitlement funds are used consistently across all PHAs, preventing MTW agencies from deviating from the core intent of the entitlement program through their experimental flexibilities. It ensures that the benefits of the entitlement reach all eligible families as intended.
Case against: Critics might argue that this provision unnecessarily restricts the innovation and flexibility that MTW agencies are designed to provide. They might contend that allowing MTW agencies to experiment with the new funds could lead to more efficient or effective ways of delivering the entitlement, and that a blanket prohibition is counterproductive.
Estimated impact: This prevents approximately 1/3 of all HCV units, managed by MTW agencies, from being subject to the program's experimental rules when new funds are allocated. It ensures a standardized approach for the significant new federal investment.
Establishes priority criteria for federal grants (emergency relief and technical assistance) that incentivize local governments to adopt policies that 'leverage the private sector's participation to provide housing that is reserved and affordable... for a minimum term of 15 years' and 'decriminalize homelessness.' It also includes a crucial caveat that the Secretary shall ensure local governments are not incentivized for undermining fair wages, health/safety, fair housing, environmental protections, resiliency standards, or tenant displacement protections.
Sec. 6(b)(2) and Sec. 8(c)(2)
Why it matters:The detailed nature of these incentives and the accompanying caveats are complex policy mechanisms designed to achieve specific outcomes while preventing unintended negative consequences. This level of detail is common in legislative drafting.
Case for: Proponents argue that these incentives are a powerful tool to encourage local governments to address systemic barriers to affordable housing and to adopt more humane approaches to homelessness. The caveats ensure that these incentives do not inadvertently undermine other important public policy goals.
Case against: Critics might argue that these incentives represent federal overreach into local land use and social policy, potentially coercing local governments into adopting policies they might not otherwise choose. Some may also find the caveats difficult to enforce or interpret, leading to ambiguity.
Estimated impact: This provision could significantly influence local zoning, land use, and criminal justice policies across the country, potentially leading to more affordable housing development and reduced criminalization of homelessness in jurisdictions seeking federal funding.