Connecticut’s homeless population has risen for the fourth consecutive year, according to the state’s latest report, showing a nearly 10% increase from 2024 to 2025. The census found 3,735 people living in shelters or outside in January, compared to 3,410 the year before. Advocates warn the system is overwhelmed, while a federal lawsuit challenges new housing grant restrictions that could leave shelters and providers without critical funding.
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Four-Year Increase Recorded
The annual point-in-time count revealed a continued rise in homelessness across the state. Most notably, the number of people living outside, such as in cars or encampments, jumped by 45%, surpassing 800 individuals. “The overall trend from this year’s count shows that the inflow of people into the homeless response system is more than providers of shelter and services can keep up with,” said Sarah Fox, CEO of the Connecticut Coalition to End Homelessness.
Lawsuit Against HUD
On Thursday, the National Alliance to End Homelessness and Women’s Development Corporation filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD). The suit challenges new restrictions on federal housing grants, arguing they are “unconstitutional and unlawful.” The organizations also requested a temporary restraining order to halt enforcement of the new rules.
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Federal Restrictions Explained
HUD’s revised funding rules now consider factors such as sanctuary protections for undocumented residents, harm-reduction services for drug use, and policies toward transgender individuals. These requirements have created uncertainty for providers relying on federal aid. Connecticut typically receives about $95 million annually for homelessness prevention and housing stability, money advocates say is essential to keeping families housed.
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HUD Policy Changes
In February, HUD Secretary Scott Turner ended enforcement of the Equal Access Rule, which previously required programs to honor self-identified gender for eligibility. Turner defended the move, saying, “It’s time to get rid of all the far-left gender ideology and get government out of the way of what the Lord established from the beginning when he created man in his own image, male and female.” He promised there was “more to come” to ensure taxpayer funds were used appropriately.
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Impact on Vulnerable Groups
Connecticut’s homeless population includes a small but vulnerable group of transgender and gender-nonconforming individuals—about 20 people in the latest count. Research shows LGBTQ populations face a higher risk of homelessness. Meanwhile, the fastest-growing demographic has been older adults: the state saw a 20% rise in people ages 55–64 and a 33% increase among those over 64 losing housing. Rising rents have been a major factor in pushing seniors out of their homes.
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Strain on Resources
Providers say they are spending more to keep people housed, limiting their ability to serve new clients. “Every dollar more that they put to keep a person in a unit is a dollar less they have to house a new person,” explained Jim Bombaci of Nutmeg Consulting, which helped prepare the report. The shortage of affordable housing means people remain in shelters longer, adding pressure to an already strained system.
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Political Focus Intensifies
Homelessness has become a growing political issue in Connecticut, with lawmakers calling for more funding and bipartisan solutions. The formation of a Homelessness Caucus has highlighted the urgency. Yet, despite increased shelter beds, demand continues to outpace supply. Advocates stress that sustained investment is needed to meet the scale of the crisis.
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Progress for Children
One area of progress has been child homelessness. The latest count showed about 590 children without stable housing in January, down from 680 the previous year. Officials credit programs like Head Start on Housing, which combines rental assistance with early education access. “I think what this reflects is when investments are made, they work,” said Jessica Kubicki of the Housing Collective. “The challenge is, these investments have to be made to scale to actually what the inflow is.”