New Executive Order: Key Actions for Recipients of Federal Financial Assistance Addressing Public Safety and Homelessness 

July 24, 2025

On July 24, 2025, President Trump signed an Executive Order focused on ending crime and disorder on America’s streets, with a strong emphasis on addressing homelessness, mental health issues, and substance use disorders. For recipients of federal financial assistance—whether you’re a state or local government, nonprofit, or other organizations—this order introduces significant policy changes that could impact how funds are managed, distributed, and utilized to combat homelessness and public safety concerns. 

Here are the key takeaways and recommendations for recipients of federal financial assistance in light of this Executive Order: 

Key Takeaways for Recipients of Federal Funds: 

1. Focus on Civil Commitment for Mental Health and Substance Use Treatment:

• The Executive Order directs the Attorney General and the Secretary of Health and Human Services to implement civil commitment policies for individuals suffering from mental illnesses or substance use disorders, particularly those who pose a risk to themselves or the public.
  
  
• Federal agencies will prioritize funding for states and municipalities that enforce civil commitment standards and focus on providing institutional treatment and other “step-down” treatment options for individuals facing mental health and substance abuse challenges. 

2. Combatting Vagrancy and Public Disorder: 

• Federal agencies will assess discretionary grant programs and look for opportunities to prioritize funding for states and localities that enforce prohibitions on open illicit drug use, urban camping, loitering, and urban squatting.
  
  
• The Executive Order encourages recipients of federal funds to implement standards addressing individuals who are a danger to themselves or others due to mental health or substance use disorders, ensuring that these individuals are treated and not just left to live on the streets. 

3. Addressing the Root Causes of Homelessness: 

• The order highlights that homelessness is often driven by underlying issues such as drug addiction and mental health disorders. Federal funding will be directed toward efforts that combine housing solutions with mental health and substance abuse treatments.
  
  
• This focus aims to prevent the continued increase in public safety threats tied to homelessness by providing recipients of federal assistance the resources needed to address these root causes directly. 

Recommendations for Recipients of Federal Financial Assistance: 

1. Enhance Collaboration Across Levels of Government:

• Foster partnerships with federal, state, and local agencies to create a cohesive strategy for addressing homelessness and public safety issues. This means aligning efforts across sectors, ensuring that mental health services, substance use treatment, and housing programs work in concert to achieve long-term solutions. 

2. Implement Comprehensive Support Systems: 

• Use federal resources to develop comprehensive support systems that don’t just provide shelter, but also access to critical services such as mental health care, substance abuse treatment, and job training. The goal is to help individuals regain stability and become active, contributing members of society. 

3. Engage with Communities to Create Inclusive Solutions: 

• Involve community leaders, nonprofits, and local advocacy groups in developing programs that address homelessness and public safety concerns. Collaborative input from all community stakeholders ensures that solutions are tailored to the specific needs of the population and have a greater chance of success. 

4. Monitor and Evaluate Programs Effectively: 

• As this Executive Order progresses, it will be important for recipients of federal funds to monitor and evaluate the effectiveness of their programs. The continuing assessment of policies and interventions will allow you to make adjustments and ensure the proper use of federal resources in solving homelessness and public disorder issues. 

5. Compliance with New Policy Directives:

• Stay updated on new regulations and funding priorities set forth by federal agencies. Ensure that your organization or local government entity is compliant with the new rules regarding civil commitment and prohibition enforcement. Regularly review how these priorities align with your current initiatives and ensure compliance when applying for federal funds. 

Looking Ahead:

This Executive Order represents a significant shift in how the federal government plans to address the growing issues of public safety and homelessness. It underscores a holistic approach that focuses not only on housing but also on addressing the underlying causes of homelessness, such as mental illness and substance use disorders. 

For recipients of federal financial assistance, this is a pivotal moment to rethink and restructure programs in line with these new priorities. By doing so, you’ll not only comply with federal directives but also help build safer, healthier communities where vulnerable populations can receive the care and support they need. 

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