White House Executive Order Shifts Federal Approach to Homelessness, Mental Illness and Public Safety

On July 24, the White House issued an Executive Order (EO) directing federal agencies to prioritize civil commitment, public safety and treatment-based interventions in addressing homelessness and related challenges. The order calls for changes across key grant programs and policy areas impacting counties.

About the Executive Order

The order directs the Departments of Justice (DOJ), Health and Human Services (HHS), Housing and Urban Development (HUD) and Transportation (DOT) to:

• Support civil commitment and institutional treatment for individuals with serious mental illness or substance use disorder who are unsheltered and unable to care for themselves
• Prioritize grants to jurisdictions that enforce laws against open drug use, unauthorized camping and squatting
• Restrict funding for harm-reduction programs like safe consumption sites
• Increase grantee accountability in homelessness programs, including requirements for treatment participation and public safety outcomes
• Allow or require programs to collect health data and, where allowed by law, share it with law enforcement

What does this mean for counties?

Federal Funding to Address Mental Health Treatment Bed Shortages

Counties across the nation are facing pressure to reduce unsheltered release of individuals with acute behavioral health needs. Now county facilities experiencing capacity issues can access additional federal dollars to expand or secure additional mental health treatment beds in an effort to avoid releasing individuals purely for the lack of available treatment space

Restrictions on the Use of Federal Funding for Harm Reduction

Counties will no longer be permitted to use discretionary funds from the Substance Abuse and Mental Health Services Administration (SAMHSA) for harm reduction services, which have traditionally included syringe programs, naloxone distribution and supervised consumption sites. While we await further guidance from HHS on the exact programs covered under the executive order's mention of harm reduction, the Office of National Drug Control Policy's 2025 priorities indicate that the availability of tools like naloxone and fentanyl test strips are a focus for the administration. Counties may continue to use alternative funding such as state, local, or opioid settlement dollars to continue local harm reduction programs. 

New Crisis Intervention Funding for FQHCs and CCBHCs

The Order expands federal funding to Federally Qualified Health Centers (FQHCs) and Certified Community Behavioral Health Clinics (CCBHCs) to deliver crisis intervention and response services. Counties will likely see increased grant opportunities to invest in rapid-response mental health care within these community-based settings, addressing crises before they escalate.

Federal Support for Drug Courts & Jail Diversion

The Order promotes the expansion of drug courts as part of broader jail diversion efforts. Federal resources may be directed to establish or scale these specialty courts at the county level, helping eligible individuals access treatment and services instead of traditional incarceration.

Emergency Law Enforcement Funds

DOJ is directed to make emergency funds available to support encampment removals in areas where public safety is at risk and local resources are limited. Counties may be eligible based on need and compliance.

New Program Requirements

Counties administering HUD homelessness programs may need to adjust for new conditions, including:

• Requirements for treatment participation for individuals with mental illness or substance use disorders
• Limits on housing options for certain populations, including sex offenders
• Potential restrictions on programs operating safe consumption sites

Data and Privacy Considerations

The order allows HUD to require health data collection from program participants and share it with law enforcement, where permitted by law. Counties will need to weigh these requirements against privacy regulations and operational practices.

Next Steps for Counties

• Watch for agency guidance and rulemaking from DOJ, HUD and HHS
• Assess local enforcement and behavioral health capacity in light of potential funding opportunities or limitations
• Coordinate across departments and stakeholders to prepare for changes in eligibility, data requirements and service delivery
• Monitor legal developments, especially around civil commitment and consent decrees that may affect local programs

This EO marks a federal shift in how homelessness and mental illness are addressed, with an emphasis on civil commitment, public safety and treatment. Counties may see new funding opportunities and program changes, but also face operational and legal considerations. NACo will continue tracking these developments and their impact on county governments.