In 2024, record high housing costs and insufficient social safety nets drove the number of people experiencing homelessness to its highest levels since data collection began.
In order to combat this issue, U.S. Sens. Mike Rounds, Tina Smith, Mike Crapo, and Jack Reed have announced the introduction of the Reducing Homelessness Through Program Reform Act, legislation to cut red tape and create local solutions for addressing homelessness.
“Despite record levels of federal funding, homelessness continues to rise. It’s clear that a one-size-fits-all approach isn’t working,” said Sen. Rounds. “The challenges we face in South Dakota are not the same as those in California or New York. This legislation takes a conservative approach by shifting power back to the states and communities closest to the problem. This commonsense bill cuts red tape and enables local leaders to deliver faster, more effective and more appropriate solutions for the people they serve.”
As of January 2024, the U.S. Department of Housing & Urban Development (HUD) reported approximately 771,480 people experiencing homelessness during the annual point-in-time count. The 2024 count represented an all-time high, which was an 18% increase from 2023. The 2025 point-in-time count results have not yet been released by HUD.
Keys to the Act
The Reducing Homelessness Through Program Reform Act aims to:
- Ease the bureaucratic burdens for Continuum of Care (CoC) organizations by moving the time intensive annual application process for funding to every other year.
- Empower local communities by cutting federal red tape and allowing homeless service providers to respond more quickly and effectively to local needs.
- Remove unnecessary federal barriers that prevent individuals from accessing housing and support services in a timely manner.
- Make common-sense reforms to the Housing Choice Voucher Program by streamlining unit inspections, income verification, and allowable uses of funds—reducing waste and inefficiency.
- Study the hiring, retention, and compensation of staff at all levels of homeless service organizations.
- Authorize specific and targeted funding to upgrade the outdated software used for applications and grant management of the CoC Program.
- Improve coordination between local healthcare systems, law enforcement, veterans’ programs, and job training services to deliver integrated support and reduce repeat homelessness or justice system involvement.
- Support better use of data—including advanced tools like artificial intelligence—to make sure resources are going where they are needed most.
- Establish more feedback mechanisms for service providers and people with lived experience of homelessness to advise HUD on the effectiveness of federal homelessness policies and programs.
- Continue the work of the U.S. Interagency Council on Homelessness and increases Congressional oversight of the council.
“Without a safe, affordable place to live nothing else in your life works—not your job, health, family, or education,” said Sen. Smith. “This bipartisan bill makes common sense reforms to federal homelessness programs: cutting red tape for homeless service providers, streamlining, and improving federal housing vouchers, reducing administrative burden, and modernizing out-of-date software systems. It will reduce homelessness while using taxpayer dollars more efficiently. We know that the best ideas come from those closest to the issues, and that’s why our legislation gives local leaders in Minnesota and across the country the tools and flexibility they need to address homelessness no matter the ZIP code.”
The housing crisis in the U.S. impacts millions nationwide, and is especially challenging for low-income individuals and families. Improvements to existing programs are needed to more effectively and efficiently provide services and assistance to address homelessness. The Reducing Homelessness Through Program Reform Act seeks to put taxpayer dollars to work in a way that strengthens communities and supports them as they work to quickly respond to and prevent the very serious challenges of homelessness.
“With rising rates of homelessness sweeping across America, nonprofit organizations on the front lines deserve maximum support as they stretch limited donations and funding to provide shelter, food, skills training, addiction recovery and hope to our friends and neighbors who need it most,” said Sen. Crapo. “This bipartisan legislation is urgently needed to strengthen the Housing Choice Voucher Program, remove burdensome regulations and better coordinate between diverse agencies serving unhoused individuals.”
This bill is endorsed by Eric Kunzweiler, CEO Inter-Lakes Community Action Partnership located in Sioux Falls, the Bipartisan Policy Center, National Low Income Housing Coalition, the Council of State Community Development Agencies whose members include the South Dakota Housing Development Authority and South Dakota Governor’s Office of Economic Development, the National Alliance to End Homelessness, Catholic Charities USA and the Mayors and CEOs for U.S. Housing Investment.
“At a time when more Americans are facing homelessness and there are fewer federal resources available, we must do everything we can to make programs more effective and assist people by connecting them to housing, local health systems, and behavioral health programs that can offer the ongoing, community-based support they need,” added Sen. Reed.
Click here for full text of The Reducing Homelessness Through Program Reform Act.
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