The Funding Gap: New Jersey Trails Peer States in Funding to Address Homelessness, Rutgers Bloustein Study Finds
New Jersey spends significantly less on homeless services than many of our peer states, according to a report published yesterday.
This report was developed as part of a Master of Public Policy Practicum at the Rutgers Bloustein School of Planning and Public Policy for the New Jersey Coalition to End Homelessness.
The report examines how New Jersey’s state funding of homeless services compares to five peer states: Connecticut, Illinois, Massachusetts, Rhode Island, and Vermont. It also examines how those peer states are responding to shifting federal homelessness policy, including the FY2025 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) and addressing issues related to criminalization of homelessness, especially in the aftermath of the 2024 City of Grants Pass v. Johnson Supreme Court decision.
The analysis found that several states allocate nearly double the amount New Jersey does per unhoused individual on homelessness-specific programs. New Jersey’s current investment in homelessness services remains notably low relative to four of the five states in the study, with only Rhode Island spending less.
“This report should be a wake-up call for New Jersey,” said Raisa Rubin-Stankiewicz, Policy Director of the NJ Coalition to End Homelessness. “Homelessness has increased by 70% in our state over the past 4 years, and the findings make clear that we cannot solve this crisis with yesterday’s level of investment. For too long, we have underfunded the services and supports that help people avoid homelessness, find shelter, and secure permanent housing.”
“New Jersey is already spending less on homelessness services than many of our peer states, and the cost of inaction is staggering. If funding for our homeless response system remains flat, emergency shelter demand could rise by 91% and unsheltered homelessness by 94% by the end of this year,” said Connie Mercer, CEO of the NJ Coalition to End Homelessness. “At the same time, devastating proposed federal funding cuts in the FY2026 CoC NOFO could result in New Jersey losing up more than $22 million of its current CoC funding from the U.S. Department of Housing and Urban Development (HUD) — meaning thousands of NJ residents, many who are the hardest to rehouse, could return to homelessness.”
“The choice before us is clear: invest now or face a deeper and more costly crisis later. We urge the Governor and State Legislature to strengthen life-saving funding for homelessness prevention, response, and emergency shelter stabilization services through Senate Resolution #432 and Assembly Resolution #7. Every New Jerseyan deserves a safe place to call home and meeting that goal requires action aligned with the magnitude of the crisis.”
To see the report in its entirety, visit the Rutgers Bloustein website at https://bloustein.rutgers.edu/addressing-homelessness-a-comparative-analysis-of-state-policies-funding-and-responses-to-federal-changes/.
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The NJ Coalition to End Homelessness (NJCEH) is a nonprofit organization leading the charge for systemic change and ‘boots on the ground’ solutions to ensure homelessness in New Jersey is brief, rare, and non-recurring.
The Edward J. Bloustein of Planning and Public Policy at Rutgers serves as a center for the theory and practice of urban planning, public policy and public health/health administration scholarship. The mission of the Bloustein School is to create just, socially inclusive, environmentally sustainable and healthy local, national and global communities.
