SALT LAKE CITY - Approximately 1,000 formerly homeless individuals in Utah may be at risk of losing their housing due to recent changes in federal funding, according to state homeless service providers. The U.S. Department of Housing and Urban Development (HUD) announced a shift in its funding approach, moving away from 'housing first' policies. The National Alliance to End Homelessness estimates that Utah could lose around $10.3 million in funding for permanent supportive housing services as a result. HUD has indicated that it is increasing overall funding for homeless services, raising it from $3.6 billion to $3.9 billion. However, the focus has shifted toward temporary transitional housing rather than permanent supportive housing. This change has raised concerns among local advocates about its impact on vulnerable populations. Permanent supportive housing is designed for individuals with significant barriers to stable housing, including those with chronic disabilities. To qualify for this type of assistance, individuals must have a disabling condition and be considered chronically homeless, which means they have been unhoused for over a year. Once housed, they typically pay 30% of their income toward rent. The National Alliance to End Homelessness has expressed concerns that the funding changes could lead to an increase in unsheltered homelessness across the country. They estimate that approximately 170,000 people nationwide may lose their housing due to these funding modifications. In Utah, the Salt Lake Valley Coalition to End Homelessness is actively seeking alternative housing options and funding streams to prevent as many people from becoming unhoused as possible. The coalition has noted that the changes could also affect private landlords who depend on rental assistance through these programs, estimating a financial impact of around $550,000 per month. Despite the ongoing litigation surrounding these funding changes, HUD has defended its new approach, stating that it aims to facilitate self-sufficiency for homeless individuals. The Utah Department of Workforce Services and Office of Homeless Services are monitoring the situation and plan to coordinate with various partners once the legal challenges are resolved.