‘Beyond Depressing:’ Cambridge Expects To Lose More Than $8 Million In Federal Housing Funding

Cambridge expects to lose more than $8 million in federal housing funding after the Trump administration adjusted requirements for the use of Continuum of Care funding — a change that could slash housing support for thousands of residents.

City Manager Yi-An Huang ’05 informed the Cambridge City Council of the expected loss of federal funding during the Council’s Monday meeting, where he called the loss “beyond depressing.”

Cambridge’s federal housing funding comes from two grants. The city expects to lose $4.6 million of the $6.4 million it receives through the Continuum of Care program, which currently provides housing to 214 Cambridge individuals and families transitioning from homelessness. It also receives $3.8 million from the Emergency Housing Vouchers for Permanent Supportive Housing program, which houses nearly 130 formerly homeless Cambridge residents.

“It’s bad enough that this administration is trying to starve people, now they want to make them homeless,” Vice Mayor Marc C. McGovern said.

Cambridge leadership has been anticipating budget cuts since the Trump administration took office. In April, the Council discussed the potential loss of funding from emergency vouchers. And last Monday, Huang announced that the Council is aiming to save $12 million next fiscal year and will make cuts to non-essential spending across departments.

Now, Cambridge is left more than $8 million short in its fight against a longstanding housing affordability crisis.

The U.S. Department of Housing and Urban Development sent a 128-page notice to grant recipients to inform them of changes to the Continuum of Care program last Wednesday. Trump’s new policy guarantees only 30 percent of the previous appropriation, with the other 70 percent transferred to programs to police homelessness and to short-term programs with mental health treatment and work requirements.

Huang said that the new restrictions are “challenging for us to accept or impossible for us to meet.”

But the loss of federal housing funding is the most severe hit to Cambridge’s coffers since Trump took office.

Huang confirmed Monday night that the emergency vouchers, administered by the Cambridge Housing Authority, are also likely to be cut.

“While not all of these funding streams are on the same schedule, and the timelines are not exact, the expectation is most of the funding will be cut off in the August to October 2026 time period,” Huang said.

“It will likely affect somewhere between 250 to 300 households,” he added.

A 2024 survey conducted by the city found that housing was far and away the most important issue to Cambridge residents. Cambridge is one of the most expensive cities to live in in the nation, and on any given night, approximately 550 individuals experience homelessness in the city.

As Cambridge adjusts to the new funding reality, Councilors suggested reaching into the city’s funding reserves to help prop up the Continuum of Care funding. But Huang said that funding won’t be enough, and that the city would have to consider covering the lost funding with budget increases or taking legal action to find a resolution.

“We are also looking at legal avenues,” Huang said. “There may be ways for us to challenge aspects of the new policy in court, similar to SNAP.”

Councilors unilaterally expressed anger and shock at the news, condemning the federal administration’s policy change.

“I had heard intimations of this, but to have it be confirmed is quite stunning,” Councilor Patricia M. “Patty” Nolan ’80 said.

“I just want to say this is very sobering news, and it’s cruel,” Councilor Catherine “Cathy” Zusy said. “It’s simply cruel.”

—Staff writer Shawn A. Boehmer can be reached at shawn.boehmer@thecrimson.com. Follow him on X @ShawnBoehmer.
—Staff writer Jack B. Reardon can be reached at jack.reardon@thecrimson.com. Follow him on X @JackBReardon.