Impact of Sequestration Could Mean More Homeless People, Families


Press Releases | December 12, 2011

Contact: Catherine An

Impact of Sequestration Could Mean More Homeless People, Families

National Alliance to End Homelessness estimates reductions in federal homeless assistance, affordable housing programs will lead to thousands more people experiencing homelessness

Hundreds of thousands more people could experience homelessness as a result of next year’s cuts to the federal budget, according to the National Alliance to End Homelessness (Alliance). As mandated by the Budget Control Act of 2011 (BCA), an initial 9.1 percent cut to all non-discretionary spending, called sequestration, will follow the failure of the Joint Select Committee on Deficit Reduction (more commonly called the Super-Committee) to propose a bipartisan solution to reduce the deficit. These cuts will mean significant reductions in resources serving homeless and at-risk people and a likely rise in homelessness across the country.

Affordable housing programs were already dealt significant cuts during the appropriations process for fiscal year 2012. Sequestration will trigger even deeper cuts to both affordable housing and homeless assistance programs starting in January 2013. A budget reduction of 9.1 percent is estimated to mean the following for fiscal year 2013:

  • 27,758 people not housed by McKinney-Vento Homeless Assistance Grants
  • 202,491 households not housed by Section 8 Rental Assistance Vouchers
  • 4,590 youth not housed by Runaway and Homeless Youth Act Programs
  • 18,684 people not served by Projects for Assistance in Transition for Homelessness
  • 11,587 people not served by the Health Care for the Homeless program.

“These are only a few of the programs that prevent and end homelessness for very low-income people and families,” said Nan Roman, president of the Alliance. “These numbers are just the beginning; many more may become or stay homeless in the years following 2013.”

Roman continued, “We recognize the economic difficulties we are all facing and the frustration over the federal budget and deficit. However, the most vulnerable people must be protected. Allowing more people to become homeless will not save money in the long run.”

The brief is available on the Alliance website: