Tech Billionaires Drive US Homeless Policy Shift Away from Housing First

The Cicero Institute, founded by Palantir co-founder Joe Lonsdale and backed by billionaires including Peter Thiel and the Kochs, has shaped Trump administration homelessness policy. Its model legislation criminalizing street camping was adopted by several states and influenced the 2024 Supreme Court decision City of Grants Pass v. Johnson, which expanded local authority to criminalize homelessness. Under Trump, HUD shifted federal funding from the Housing First model—which prioritizes permanent housing before other services—toward encampment enforcement and transitional housing, imposing a 30% cap on permanent housing that could push 170,000 people back into homelessness. The policy redirects money to substance abuse and mental health treatment instead. Critics argue the approach ignores root causes like rising housing costs, wage stagnation, and a 7.3 million unit deficit for low-income renters. The shift accelerates police surveillance, incarceration, and private equity profit from prisons and healthcare. In California, similar policies are pursued by Governor Gavin Newsom and San Jose Mayor Matt Mahan, who has received donations from Lonsdale, Sergey Brin, and Reed Hastings. Randy Shumway, chair of Utah's Homeless Services Board, promotes data collection software Know-by-Name for statewide use.