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Friday, September 12, 2025

Rounds introduces bipartisan bill aimed at reforming federal homeless assistance

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Senator Mike Rounds, US Senator for South Dakota | Official U.S. Senate headshot

Senator Mike Rounds, US Senator for South Dakota | Official U.S. Senate headshot

U.S. Senators Mike Rounds (R-S.D.), Tina Smith (D-Minn.), Mike Crapo (R-Idaho), and Jack Reed (D-R.I.) have introduced the Reducing Homelessness Through Program Reform Act. The bill aims to address homelessness by shifting decision-making power to state and local levels, reducing federal regulations, and improving program efficiency.

“Despite record levels of federal funding, homelessness continues to rise. It’s clear that a one-size-fits-all approach isn’t working,” said Rounds. “The challenges we face in South Dakota are not the same as those in California or New York. This legislation takes a conservative approach by shifting power back to the states and communities closest to the problem. This commonsense bill cuts red tape and enables local leaders to deliver faster, more effective and more appropriate solutions for the people they serve.”

Smith highlighted housing as foundational: “Without a safe, affordable place to live nothing else in your life works – not your job, health, family, or education,” she said. “This bipartisan bill makes common sense reforms to federal homelessness programs: cutting red tape for homeless service providers, streamlining and improving federal housing vouchers, reducing administrative burden and modernizing out-of-date software systems. It will reduce homelessness while using taxpayer dollars more efficiently. We know that the best ideas come from those closest to the issues, and that’s why our legislation gives local leaders in Minnesota and across the country the tools and flexibility they need to address homelessness no matter the ZIP code.”

Crapo noted growing pressures on nonprofits: “With rising rates of homelessness sweeping across America, nonprofit organizations on the front lines deserve maximum support as they stretch limited donations and funding to provide shelter, food, skills training, addiction recovery and hope to our friends and neighbors who need it most,” he said. “This bipartisan legislation is urgently needed to strengthen the Housing Choice Voucher Program, remove burdensome regulations and better coordinate between diverse agencies serving unhoused individuals.”

Reed added: “At a time when more Americans are facing homelessness and there are fewer federal resources available, we must do everything we can to make programs more effective and assist people by connecting them to housing, local health systems, and behavioral health programs that can offer the ongoing, community-based support they need.”

According to data from January 2024 provided by HUD's annual point-in-time count—which tallies people experiencing homelessness—about 771,480 individuals were counted nationwide. This figure marks an 18% increase over 2023's numbers.

The proposed act would change several aspects of how federal aid for homelessness is managed:

- It would reduce application frequency for Continuum of Care organizations from annually to every other year.

- Local providers would gain greater flexibility in responding quickly.

- Barriers preventing timely access to housing or services would be removed.

- Reforms include streamlining inspections for Housing Choice Vouchers as well as simplifying income verification processes.

- The act calls for studies on staffing at all levels within homeless service organizations.

- Targeted funds would be allocated toward updating outdated grant management software.

- Coordination among healthcare systems, law enforcement agencies, veterans’ groups, and job training services would be improved.

- Enhanced use of data analytics—including artificial intelligence—would help allocate resources where most needed.

- Feedback mechanisms involving service providers and those with direct experience of homelessness would inform future policy decisions at HUD.

- Congressional oversight of the U.S. Interagency Council on Homelessness would be increased.

The legislation has garnered endorsements from multiple organizations including Inter-Lakes Community Action Partnership based in Sioux Falls; Bipartisan Policy Center; National Low Income Housing Coalition; Council of State Community Development Agencies; National Alliance to End Homelessness; Catholic Charities USA; Mayors & CEOs for U.S. Housing Investment.

Eric Kunzweiler of Inter-Lakes Community Action Partnership stated: “As a long-standing service provider for HUD homelessness assistance prevention programs, Inter-Lakes Community Action Partnership fully supports this bill that eases administrative burdens which would allow us to respond more quickly to the needs of our communities and get families housed quickly in South Dakota.”

Michele Stockwell from Bipartisan Policy Center Action commented: "BPC Action is proud to endorse the Reducing Homelessness Through Program Reform Act and applauds Sens. Mike Rounds (R-SD), Tina Smith (D-MN), Mike Crapo (R-ID) and Jack Reed (D-RI) for their bipartisan leadership. The bill’s focus on cutting red tape, streamlining the Housing Choice Voucher program, and improving data coordination aligns closely with the proposals put forth by BPC in its American Housing Act. These practical reforms will help communities more effectively address homelessness and connect people with housing and services.”

Renee Willis of NLIHC added: “Streamlining systems isn’t just good governance—it’s what’s needed to meet the urgent housing needs of people across the country,” she said. “The bipartisan Reducing Homelessness Through Program Reform Act enacts common-sense reforms to improve coordination between government agencies and the private sector, ensuring programs more effectively serve people with the most urgent housing needs.”

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