A new federal grant program could expand free addiction treatment and recovery housing for people experiencing homelessness.
On June 1, the U.S. Department of Housing and Urban Development (HUD) opened more than $4 billion in grants to fund community programs that pair housing with mental health and addiction care.
What the $4 Billion Grant Program Funds
HUD opened the money through its Continuum of Care program, which supports local efforts to reduce homelessness.
The agency expects to award up to 7,000 grants ranging from $2,500 to $25 million each, and has called it the most competitive funding opportunity in the program’s history. The application period closes August 26.
For people who need addiction care, the important part is where the money is pointed. Applicants working in mental health and addiction treatment must show that their programs are recovery-oriented and connected to local behavioral health systems.
New projects have to offer more than case management and referrals. They must provide multiple levels of care for both mental health and substance use, and each project needs at least one formal partnership with a community mental health center or a certified community behavioral health clinic.
There is also a clear emphasis on treatment-focused beds, recovery housing, and sober living environments.
A Shift Toward Recovery Housing
The new priorities mark a change from Housing First, the longstanding federal model that provides housing without requiring sobriety or treatment first.
HUD says the latest grants are designed to put recovery-focused services at the center of the country’s homelessness response, with funding steered toward programs that can show results such as people moving into stable housing and staying in care.
What this could mean for readers is more no-cost recovery housing and treatment beds in communities that win grants, especially programs that combine a place to live with ongoing addiction and mental health support.
Who Qualifies for Free or Low-Cost Treatment
The grants fund organizations rather than individuals, but the goal is more free services for people experiencing homelessness who also need mental health or addiction care.
More broadly, free and low-cost treatment is available right now to many people through Medicaid insurance, state-funded programs, sliding-scale clinics, recovery housing and nonprofit and faith-based programs. People who are uninsured, underinsured, or unhoused often qualify for these options.
How to Access These Resources
You do not have to wait for new programs to open to find help. Here are some starting points:
- Check whether you qualify for Medicaid coverage for rehab in your state
- Ask local programs about sliding-scale fees, scholarships and sober living beds
- Call 211 to ask about local housing and treatment resources
- Contact SAMHSA’s national helpline at 1-800-662-4357 for free, confidential referrals
Payment Options Explained
Medicaid covers addiction treatment for eligible adults in most states, often at no out-of-pocket cost, and can include detox, outpatient care and medication-assisted treatment.
State-funded and grant-funded programs serve people who are uninsured. Sliding-scale clinics set fees based on income, and recovery housing and sober living programs are often low-cost or free through nonprofits.
Finding Affordable Treatment
Cost and housing should not be the reason someone goes without care. Rehabs.org lists free and low-cost treatment options nationwide, including programs connect people to recovery housing. Call
800-914-7089
(Sponsored)
to find affordable care near you.

