More States Are Now Using Medicaid Funding To Address Housing Crisis

Homeless New Yorkers At Odds With City On New Homeless Policy — (Photo : Spencer Platt/Getty Images) : A homeless man's sign rests on the street on December 21, 2015 in New York City. On Monday the homeless advocacy group Picture the Homeless joined supporters and homeless individuals at a news conference to announce a plan for legal action against New York City's treatment of the homeless. Homelessness in New York City is at an all time high despite the liberal administration of Bill de Blasio. Picture the Homeless accused the city and police of targeting the homeless by forcing them to move from public spaces and for confiscating their property

More states across the country are now allocating Medicaid funding to help find housing for homeless people.

The Medicaid program is generally intended to offer government assistance to low-income earners to cover medical expenses. However, at least 20 states are now allocating some of the Medicaid funds to social services, including finding and paying for housing or rent.

Among all US states, California has allocated the biggest funding into a Medicaid initiative to help homeless patients find shelter and avoid eviction, putting $12 billion into the program, per CNN.

Oregon follows after, spending more than $1 billion on social services such as emergency rental assistance for homeless patients. Arizona has allocated $550 million to cover at least six months of rent for homeless people, while Arkansas has dedicated $100 million to house people in the state who need shelter the most,

Several other states are also expected to follow suit, including Montana, Tennessee, and West Virginia. New York and Washington have received approval from the federal government to use Medicaid funding to cover short-term housing assistance.

Homelessness in the US

The number of homeless people in the country increased by 12% in 2023 to an estimated 653,104 Americans, per a report from the Department of Housing and Urban Development. More specifically, homelessness increased by 16% among families with children and 7% among veterans.

It was the highest level recorded since the department began counting the population using the annual survey in 2007.

The report also found that about 20 of every 10,000 people living in the country were homeless on a single night last year. People of color made up a disproportionate number of people who faced homelessness last year. The number of homeless Asian and Asian Americans jumped 40% in the past year, while 39,000 more Hispanic or Latino people said they were experiencing homelessness last year.

In total, there were 70,650 more homeless people in 2023 than in 2022, according to the HUD.

The number of homeless people in the country has increased as rent prices continue to rise and pandemic-era aid, including a federal moratorium on evictions, ended.