Often attributed to Ernest Hemingway, this aphorism captures a fundamental problem with Washington’s approach to homelessness: More spending, more providers, and more services, but not more progress.
asserted
aphorism → attribute → homelessness
America’s homelessness crisis is too serious for a federal funding system that incentivizes activity over results.
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that → incentivize → results
Federal policy too often rewards providers for beds, housing slots, and services instead of helping people exit homelessness.
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people → reward → homelessness
A new Cicero Institute report makes a persuasive case for change: taxpayers should finance results, not simply activity.
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taxpayers → make → results
The report examines IRS filings from 1,458 nonprofit providers receiving Housing and Urban Development (HUD) Continuum of Care funding.
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report → examine → funding
Between 2013 and 2024, their total revenue increased 123.9%, compared with 34.7% inflation.
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revenue → increase → inflation
Over the same period, the national one-night count of people experiencing homelessness rose 30.7%.
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count → experience → homelessness
The report’s analysis documents these concerning figures.
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analysis → document → figures
Federal funding has also grown.
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funding → grow → ?
HUD Continuum of Care awards increased 67.3% between fiscal years 2018 and 2024, according to the report’s analysis of HUD award data.
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awards → increase → data
Meanwhile, the National Alliance to End Homelessness has called for $9.6 billion in additional federal appropriations, including $4.8 billion specifically for salary increases at homeless-service organizations.
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Alliance → call → organizations
Congress should ask whether more money on the same terms will produce better outcomes.
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money → ask → outcomes
The answer, in large part, lies in the incentives.
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answer → lie → incentives
Under the traditional Continuum of Care model, grants have largely funded activities such as maintaining beds, operating housing units, and delivering services.
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grants → fund → services
Renewal funding has depended more on carrying out funded activities and meeting compliance requirements than on measurable outcomes.
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funding → depend → outcomes
As the Cicero report explains, this is essentially a fee-for-service model.
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this → explain → service
Providers are paid to maintain services, not necessarily to reduce the number of people who need them.
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who → pay → them
Judge a homelessness program by whether it helps people move from the streets or shelters toward stable housing, treatment, employment, and greater independence — not by how many beds it funds.
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it → judge → beds
Funding should reward measurable progress without penalizing providers who serve people with complex needs.
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who → reward → needs
The Cicero report supports HUD’s fiscal year 2026 shift toward a more competitive, outcome-oriented Continuum of Care program.
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report → support → program
The FY2026 Notice of Funding Opportunity (NOFO) makes 40% of renewal funding competitive and sets aside $1.3 billion for transitional housing and supportive services.
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% → make → housing
It gives greater weight to reductions in unsheltered homelessness, treatment, employment income, and exits to housing without ongoing subsidies.
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It → give → subsidies
The competition is proceeding under a First Circuit stay pending appeal, after a district court ruling vacated the NOFO.
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ruling → proceed → NOFO
These changes do not guarantee success; they must be judged by results.
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they → guarantee → results
HUD should publish performance data and refine its measures.
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HUD → publish → measures
But preserving a system that rewards inputs over outcomes is no answer.
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that → preserve → outcomes
The most enduring way to expand society’s capacity to address difficult problems is sustained economic growth and rising prosperity.
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way → expand → problems
Economic growth supports job creation and higher incomes, while higher incomes expand the tax base and resources available to finance public services.
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incomes → support → services
As a commissioner of The Growth Commission, I work alongside colleagues focused on policies that expand growth and prosperity.
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that → work → growth
Our International Advisory Board brings together current and former national leaders who understand firsthand the transformative power of economic growth.
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who → bring → growth
We share a conviction that prosperity is essential to rising living standards and addressing longstanding challenges, including homelessness.
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prosperity → share → homelessness
A wealthier society can do more for its most vulnerable citizens, including people who may never achieve full independence.
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who → do → independence
Growth will not eliminate human suffering, but stagnation makes it harder to address.
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it → eliminate → suffering
Washington should pursue economic opportunity and accountability in public spending.
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Washington → pursue → spending
Federal grants should reward genuine progress, while economic policy should expand the prosperity that makes lasting solutions possible.
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solutions → reward → prosperity
Taxpayers deserve no less, and people experiencing homelessness deserve a system measured by whether it helps them rebuild their lives.
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them → deserve → lives
He previously served as associate director of the National Economic Council at the White House and deputy undersecretary for international affairs at the U.S. Department of Labor.
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He → serve → Labor
The Aporia
