ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

How Biden Administration Is Utilizing Medicaid to Address Record-High Homelessness in US

The largest demographic affected by homelessness falls within the 35 to 44 age group.
PUBLISHED FEB 12, 2024
Cover Image Source: A homeless man sleeps under an American Flag blanket on a park bench | Getty Images | Photo by Spencer Platt
Cover Image Source: A homeless man sleeps under an American Flag blanket on a park bench | Getty Images | Photo by Spencer Platt

In a significant move to address the escalating homelessness crisis in the United States, the Biden administration has unveiled an innovative initiative aimed at providing additional government aid to low-income individuals struggling to pay rent or secure temporary housing. This groundbreaking effort leverages Medicaid funds to expand support for housing-related issues in select states, signaling a comprehensive approach to tackle the record-high levels of homelessness, per Market Watch.

U.S. President Joe Biden and Education Secretary Miguel Cardona | Getty Images | Photo by Chip Somodevilla
U.S. President Joe Biden and Education Secretary Miguel Cardona | Getty Images | Photo by Chip Somodevilla

The Biden administration's announcement comes in response to the alarming surge in homelessness, reaching a record high in 2023. The U.S. Department of Health and Human Services (HHS) and the Department of Housing and Urban Development (HUD) jointly revealed plans for an ambitious "accelerator" program, targeting eight states and the District of Columbia. These states have been strategically chosen to participate in the federal initiative, emphasizing a collaborative effort to reduce homelessness through Medicaid expansion.

Secretary of the U.S. Department of Health and Human Services, Xavier Becerra expressed the administration's commitment, stating, "Nobody in America should experience homelessness." The initiative focuses on enhancing Medicaid coverage in specific states to assist individuals in finding housing and avoiding eviction, addressing the root causes of homelessness.

The "accelerator" program aims to empower states and Washington, D.C., by allowing them to allocate Medicaid dollars toward housing support for those in need. Traditionally known for offering government-funded health insurance to low-income households, Medicaid is now being extended to cover a broader spectrum of wellness care, aligning with the administration's proactive approach to preventing homelessness before it occurs.

Secretary Becerra highlighted the transformative potential of using federal healthcare dollars for wellness care, emphasizing the goal of intervening before individuals face health challenges and maintaining their overall well-being. The administration encourages states to demonstrate that utilizing Medicaid funds for housing support will improve someone's health, serving the dual purpose of fulfilling the Medicaid program's objectives and saving taxpayers money in the long run.

A man tows his cart down the street on Skid Row | Getty Images | Photo by David McNew
A man tows his cart down the street on Skid Row | Getty Images | Photo by David McNew

While some states, such as California, already allocate Medicaid funds towards housing support, the federal government's accelerated efforts aim to assist states like Arizona, California, Hawaii, Maryland, Massachusetts, Minnesota, North Carolina, and Washington, along with the District of Columbia, in better implementing and expanding these programs. The goal is to create a more comprehensive and effective framework to address the growing homelessness crisis.

The urgency of this initiative is underscored by the alarming statistics presented in a December 2023 report by HUD, revealing a 12% increase in homelessness between 2022 and 2023, totaling approximately 71,000 additional individuals experiencing homelessness, reaching a record high of 653,000. The report highlights the critical need for innovative solutions to reverse this troubling trend.

Rising rents over the past few years have contributed significantly to the homelessness crisis, pushing millions of tenants into the realm of "rent-burdened" households, where a substantial portion of their incomes is allocated to housing costs. A report by Harvard further emphasizes the challenges, indicating that a full-time minimum wage worker cannot afford a modest one-bedroom rental in over 92% of U.S. counties. The confluence of these factors necessitates a holistic and targeted approach to combat homelessness at its roots.

A 'for rent' sign is displayed outside an apartment building | Getty Images | Photo by Allison Dinner
A 'for rent' sign is displayed outside an apartment building | Getty Images | Photo by Allison Dinner

The largest demographic affected by homelessness falls within the 35 to 44 age group, and the top three states with the most significant absolute increases in homelessness between 2022 and 2023 were New York, California, and Florida. Secretary Becerra's unequivocal statement, "Nobody in America should experience homelessness," resonates as a rallying cry for concerted efforts to address this complex issue comprehensively.

Medicaid, a federal program that sets rules for all states and provides at least half of the funding, supports over 90 million low-income individuals in the U.S. According to KFF, a nonprofit organization focused on public health and policy, the federal government has recently issued new guidance on utilizing Medicaid funds to support housing expenses more broadly, including rent and temporary housing. The "accelerator" program aims to assist states in implementing this guidance effectively.

States like California have already taken proactive steps by implementing initiatives that provide services to homeless individuals, covering expenses such as security deposits or assigning case managers to aid in apartment searches. Arizona is allocating Medicaid funds specifically to help homeless individuals cover six months of rent, illustrating the potential impact of innovative approaches tailored to each state's unique needs.

MORE ON MARKET REALIST
The Sharks felt that the founder of Besomebody didn't have the "capacity to listen."
20 hours ago
Jennings shared how Trebek showed great resillience and showmanship during his last days on the show.
21 hours ago
The contestant, Staci Urban put up a great show to win over $60,000 in one night.
1 day ago
The TikToker warned fellow shoppers about the risks of infection from the salmon.
1 day ago
With four sharks eager to invest, the founder of Kinfield knew how to get two of them to team up.
1 day ago
Shanquetta Cato, who participated in the 'Teacher's Week' did 'not get lucky' on the show.
1 day ago
After his book expert, Rebecca, raved about the rare book, the pawn shop boss knew he had to make a deal.
1 day ago
At one point, the host was begging the players to give just one sensible answer.
2 days ago
The long and difficult Bonus Round that cost Toya Johnson-Moore and Dionna Houston dearly.
2 days ago
Cuban swooped in to save Alexander Simone, the founder of ProntoBev from Mr Wonderful's greed.
2 days ago
The man who brought the box on his shoulder had no idea that it was a relic of the American Revolutionary War.
2 days ago
Harrison got a great deal for the historically significant document.
2 days ago
When the founders of Flated hesitated to close the deal, all the other Sharks came together.
3 days ago
TikTok creator, Crissy shared a little win for all the short shoppers out there.
3 days ago
The player, Lisa Thomas's phenomenal comeback after falling behind initially.
3 days ago
While Harrison wanted to get the Steve McQueen owned 1940's Indian Bike, he couldn't make a deal.
4 days ago
While he has a spotless track record on screen, Jennings loves to have fun behind the scenes.
4 days ago
The contestant, Desiree Kramer pulled off a stunning sub-two second win in the finale.
4 days ago
The painting from former NFL Player Ernie Barnes turned out to be one of the most valuable pieces.
4 days ago
Contestant Eleni Kapetanakis faced a rather unusual 'Place' category puzzle on the show.
5 days ago