WASHINGTON — The Department of Health and Human Services is launching a new $96 million grant program to help cities and localities treat substance abuse issues, mental illness and homelessness, The Post has learned.
Health and Human Services Secretary Robert F. Kennedy Jr. will be making a formal announcement about the Safety Through Recovery, Engagement and Evidence-based Treatment and Support (STREETS) program in Michigan later Wednesday.
Applicants will be compete for eight eligible slots to receive up to $3 million each year over a four-year period in funding that would help pay for treatment and recovery programming, housing support, street outreach as well as associated spending at the level of local government, law enforcement and the courts.
Homelessness has been on the rise in the US, with individuals experiencing first-time homelessness increasing by 23% since 2019, according to Department of Housing and Urban Development statistics.
New York, for example, saw its homeless population explode by 78% over that same time period to about 140,000 people, the office of the city’s comptroller reported in March.
Meanwhile, illicit drug use jumped from 22.2% to 25.5% from 2021 to 2024, according to the latest National Survey on Drug Use and Health.
Drug overdose deaths have been on the decline since 2023, per data from the Centers for Disease Control and Prevention.
HHS is also announcing Tuesday that more than $612 million in behavioral health funding can be applied for separately from the STREETS program.
That will allow communities to set up Certified Community Behavioral Health Clinics, staff suicide and crisis support lifelines, more funding for substance abuse prevention as well as mental health services.
The tranches include $238.6 million for suicide and crisis lifelines, $223.1 million for CCBHCs, $80 million for treating substance issues and recovery, and more than $70 million for mental health support.
The STREETS program follows President Trump’s executive action on Ending Crime and Disorder on America’s Streets, which authorized HHS to use its grants to fight vagrancy and address homelessness and increase public safety.
“The number of individuals living on the streets in the United States on a single night during the last year of the previous administration — 274,224 — was the highest ever recorded,” the order stated.
“The overwhelming majority of these individuals are addicted to drugs, have a mental health condition, or both. Nearly two-thirds of homeless individuals report having regularly used hard drugs like methamphetamines, cocaine, or opioids in their lifetimes,” it noted.
“An equally large share of homeless individuals reported suffering from mental health conditions. The Federal Government and the States have spent tens of billions of dollars on failed programs that address homelessness but not its root causes, leaving other citizens vulnerable to public safety threats,” the president said.
“Shifting homeless individuals into long-term institutional settings for humane treatment through the appropriate use of civil commitment will restore public order. Surrendering our cities and citizens to disorder and fear is neither compassionate to the homeless nor other citizens.”
So-called “harm reduction” services — which are known to provide sites for addicts to safely inject drugs — will be barred from receiving funding, pursuant to that July 2025 order.
Trump directed HHS’ Substance Abuse and Mental Health Services Administration to “not fund programs that fail to achieve adequate outcomes, including so-called ‘harm reduction’ or ‘safe consumption’ efforts that only facilitate illegal drug use and its attendant harm.”
At the same time, the Trump administration’s anti-fraud task force has been moving to revoke funds from public programs that haven’t effectively dealt with behavioral health issues.
City, county and other local governments will be eligible for the STREETS program funding, in addition to federally recognized Indian tribes and other tribal organizations, but universities, hospitals, foundations and nonprofits won’t be in line to receive the money.
All applicants must be able to begin services within six months of taking the funds.
