$100 Million Federal Funding to Address Homelessness and Substance Use

Naomi Carr
Brittany Ferri
Written by Naomi Carr on 18 March 2026
Medically reviewed by Brittany Ferri on 20 March 2026

The launch of a new program was announced recently, which will provide $100 million in funding to SAMHSA-led care in eight pilot cities. This program aims to address issues relating to homelessness, substance use and addiction, and mental illness.

A close up photo of a volunteer holding the hands of a homeless woman closely and warmly

RFK Jr.'s $100M grant to target homelessness and addiction

Robert F. Kennedy Jr., the United States Secretary of Health and Human Services, announced a $100 million grant for a new pilot program that aims to address issues relating to homelessness and substance use. 

The Safety Through Recovery, Engagement, and Evidence-Based Treatment and Supports (STREETS) program will distribute these funds under the management of the Substance Abuse and Mental Health Services Administration (SAMHSA).

This program will use these funds to provide integrated and comprehensive care for individuals experiencing substance use disorders (SUDs) and homelessness. This will include providing early intervention and care models that aim to address all aspects of the individual, including mental health and substance use, with recovery approaches such as detox treatments, sober living accommodations, and psychosocial support.

The program will operate in eight communities initially, attempting to coordinate and integrate the various services that may be involved. This includes consulting with different communities, tribal nations, and faith-based organizations to provide equal accessibility and collaborative approaches to recovery.

Why homelessness and substance use are linked

It is common for homelessness and substance use to occur alongside one another, and each may make the other more likely. It is estimated that SUD occurs ten times more often among unhoused individuals than among the general population.

Factors that contribute to homelessness and substance use overlap, including childhood and lifetime adversity and poverty. It is also common for substance use to both cause and be caused by homelessness; as one worsens, the likelihood of the other increases.

For example, substance use can contribute to various difficulties, such as potentially leading to inabilities to fund housing, the breakdown of interpersonal relationships, impaired professional functioning, and loss of employment, thus increasing the risk of homelessness.

Conversely, homelessness can contribute to worsening mental and physical well-being, isolation, inaccessible services, and increased exposure to substance use environments, thereby leading to an increased likelihood of substance use.

What the research says about effective solutions

Solutions to homelessness, SUDs, and mental health issues, particularly when occurring concurrently, require comprehensive and integrated treatment approaches that focus on the individual as a whole. This can include interventions and actions such as:

Potential impact of the $100M investment

Some of the aims and potential impacts of this investment include:

  • Taking homeless individuals with substance use or mental health issues off the streets and providing them with housing and professional support.
  • Increasing accessibility of opioid use disorder resources, including medications, sober living accommodations, and long-term support.
  • Reducing the number of overdose deaths.
  • Connecting individuals with their community who have been isolated through issues relating to homelessness, SUD, and mental illness.
  • Strengthening the coordination among all sectors and the processes that occur within these circumstances, including courts and law enforcement, SUD treatments, mental health treatment, and psychosocial support.
  • Opportunities for faith-based organizations to apply for and receive funds from these grants to support their work with individuals with SUDs.

Criticisms and challenges

While this program can offer crucial support to many individuals experiencing homelessness and SUDs, some of the potential concerns and criticisms that have been raised include:

  • Large numbers of individuals with SUDs do not feel they require treatment or are not willing to engage in treatment.
  • People all across the US experience SUDs and homelessness. This program will be accessible to only eight cities, meaning only a small proportion of the population will be able to utilize its services.
  • SAMHSA, the organization managing this program, has faced 900 job layoffs in the last year, with significant issues under the Trump administration around funding.
  • For long-term treatments to be successful, individuals need to adhere to medications and therapeutic interventions. Many unhoused people with SUDs fail to complete treatment, do not adhere to prescribed interventions, and struggle to find or maintain placement within shelter accommodations.
  • Recently, grants for housing through homelessness funds have been significantly reduced, with the focus of these funds being shifted to temporary placements in treatment shelters. This may increase homelessness and prevent people from accessing safe and long-term accommodation, potentially hindering their treatment and recovery.

Final thought

The proposed intention for this funding is to help create safer and healthier communities. It has the potential to help people experiencing homelessness, substance use issues, and mental illnesses receive necessary treatment and long-term support, while also helping members of the community to feel safer from the activity associated with these issues.

However, other changes to federal funding in recent months have sparked controversy and concern among professionals and could cause detrimental impacts to vulnerable people, including those experiencing homelessness, substance use issues, and mental illness.

Resources:

  1. U.S. Department of Health and Human Services. (2026). Secretary Kennedy Announces $100 Million Investment in Great American Recovery. HHS. Retrieved from
  2. Campbell, L. (2026). RFK Jr Announces $100m in Grants to Address Homelessness and Substance Use. The Guardian. Retrieved from
  3. Gutwinski, S., Schreiter, S., Deutscher, K., & Fazel, S. (2021). The prevalence of mental disorders among homeless people in high-income countries: An updated systematic review and meta-regression analysis. PLoS medicine, 18(8), e1003750. Retrieved from
  4. O'Shaughnessy, B. R., Mayock, P., & Kakar, A. (2024). The recovery experiences of homeless service users with substance use disorder: A systematic review and qualitative meta-synthesis. The International journal on drug policy, 130, 104528. Retrieved from
  5. Nicholls, M.J., & Urada, L.A. (2022). Homelessness and polysubstance use: A qualitative study on recovery and treatment access solutions around an urban library in Southern California, USA. Health & social care in the community, 30(1), e175–e183. Retrieved from
  6. Miler, J.A., Carver, H., Masterton, W., Parkes, T., Maden, M., Jones, L., & Sumnall, H. (2021). What treatment and services are effective for people who are homeless and use drugs? A systematic 'review of reviews'. PloS one, 16(7), e0254729. Retrieved from
  7. President Trump. (2026). Addressing Addiction Through the Great American Recovery Initiative. The White House. Retrieved from
  8. Doucet, I. (2026). ‘Counterintuitive and Dangerous’: Advocates Warn Trump Administration Policies Will Increase Homelessness. The Guardian. Retrieved from
  9. American Psychological Association. (2026). New and Proposed Policies Affecting Access to Mental Health Care. APA. Retrieved from

Activity History - Last updated: 20 March 2026, Published date:


Reviewer

Brittany Ferri

PhD, OTR/L

Brittany Ferri holds a PhD in Integrative Mental Health and is an occupational therapist, health writer, medical reviewer, and book author.

Activity History - Medically Reviewed on 19 March 2026 and last checked on 20 March 2026

Medically reviewed by
Brittany Ferri

Brittany Ferri

PhD, OTR/L

Reviewer

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