Federal Government Launches $100 Million Program to Connect People Experiencing Addiction and Homelessness with Housing and Treatment

The U.S. Department of Health and Human Services announced on February 2, 2026 a $100 million federal investment aimed at addressing addiction and homelessness through a new program called STREETS — Safety Through Recovery, Engagement, and Evidence-based Treatment and Supports.

The initiative will fund targeted outreach, psychiatric care, medical stabilization, and crisis intervention for people experiencing homelessness and substance use disorders. According to HHS Secretary Robert F. Kennedy Jr., the program will connect individuals to stable housing with a focus on long-term recovery and independence.

"Addiction begins in isolation and ends in reconnection," Secretary Kennedy said at the announcement. "Thanks to the leadership of President Trump, we are bringing Americans suffering from addiction out of the shadows and back into community."

The program is part of the Trump administration's Great American Recovery Initiative, which aims to coordinate federal agencies, healthcare providers, and community groups to tackle addiction and homelessness. STREETS will initially operate in eight communities, with plans to expand partnerships with local governments and community organizations.

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What the Program Offers

The STREETS Initiative provides wraparound services designed to address both immediate needs and long-term stability. Outreach teams will connect with people on the streets, in encampments, or in crisis situations. Services include psychiatric evaluations, medical care for co-occurring health conditions, and crisis intervention when individuals are at risk.

Once stabilized, participants will receive help finding stable housing. The program emphasizes recovery-oriented support rather than temporary shelter, aiming to reduce the cycle of returning to the streets. HHS will work with local housing authorities and community groups to secure placements and ensure ongoing support.

Faith-based organizations are eligible to participate in the program. "We are in a spiritual malaise in this country, and we need to give people access to all different ways of reconnecting with something that is higher than themselves," Secretary Kennedy said.

HHS also announced a $10 million Assisted Outpatient Treatment (AOT) grant program to support adults with serious mental illness. AOT is a civil court-ordered, community-based treatment program for individuals who are unable to engage with conventional outpatient care and are unlikely to live safely in their community without structured support.

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Rising Substance Use Disorder Rates Drive Federal Action

The STREETS Initiative responds to alarming trends in substance use and homelessness. According to SAMHSA survey data, substance use disorder among people ages 12 and older rose from 7.4% in 2019 to 16.8% in 2024. Nearly eight in ten people with a substance use disorder in 2024 did not receive treatment.

The program directly implements President Trump's July 24, 2025 Executive Order "Ending Crime and Disorder on America's Streets," which directed federal agencies to prioritize evidence-based substance use disorder programs and assisted outpatient treatment that moves people with serious mental illness or addiction off the streets and into stable housing and support networks.

In addition to STREETS, HHS announced $794 million in 2026 annual block grant awards. This includes $319 million for comprehensive community mental health services for adults with serious mental illness and children with serious emotional disturbance, and $475 million for the Substance Use Prevention, Treatment, and Recovery Services Block Grant program.

The Administration for Children and Families also added three medications for opioid use disorder — buprenorphine, methadone, and naltrexone — as prevention services eligible for federal funding. States and tribes can now receive a 50% federal match to provide these FDA-approved medications to parents when children are at imminent risk of entering foster care but can remain safely in the home or in a kinship placement with access to treatment.

HHS emphasized that the program represents a shift from what Secretary Kennedy called "Biden-era policies that were misguided, failing to stem the tide of death, addiction, homelessness, and crime." The new approach focuses on treatment and recovery rather than harm reduction strategies such as safe injection sites and housing-first models that the current administration argues enabled continued drug use.

The STREETS Initiative will begin accepting applications from communities later this year. Details about eligibility criteria and application timelines will be announced through SAMHSA's grant portal.