State housing officials are sounding the alarm over a new federal policy that could dramatically reshape homelessness programs in Maine. The U.S. Department of Housing and Urban Development (HUD) announced it will shift funding away from permanent supportive housing—a model that provides long-term stability for chronically homeless individuals—and instead prioritize transitional housing programs with work requirements.

Currently, Maine has more than 1,600 permanent supportive housing units, which advocates say have been critical for stabilizing vulnerable populations, including the elderly and youth. Under the new policy, federal assistance for these programs would be capped at 30%, and HUD will no longer automatically renew grants for existing programs. That means some beneficiaries could lose housing when current funding runs out.

Dean Klein, executive director of Maine’s Continuum of Care, said the change could impact hundreds of Mainers, potentially forcing them into homelessness or into an already strained shelter system. “This funding has been the backbone of homeless services in our state,” Klein said, adding that the model has saved lives by keeping people off the streets.

Officials are still working to determine the full scope of the impact, but advocates warn the policy could destabilize families and increase pressure on emergency shelters statewide.

Read the full story at Maine Public.