Phoenix Faces Surge in homelessness as COVID-19 Relief Funds Expire
PHOENIX - November 2, 2025 – A growing number of individuals in Phoenix are experiencing homelessness as federal funding streams established during the COVID-19 pandemic have begun to dry up, straining local resources and exacerbating an already challenging situation. Outreach workers report a visible increase in encampments and individuals seeking emergency shelter, signaling a potential crisis for the city’s vulnerable population.
The expiration of these funds, which supported rental assistance programs, eviction prevention, and expanded shelter capacity, is coinciding with rising housing costs and persistent economic challenges for many Phoenix residents.This confluence of factors is pushing more people into homelessness, and advocates warn that without sustained investment, the situation will likely worsen. Maricopa County is currently grappling with how to address the growing need for behavioral health services, with a bond initiative, Proposition 409, on the november ballot seeking $898 million for a new hospital.
During the pandemic,substantial federal aid allowed organizations like Arizona 2-1-1 to connect residents with crucial resources. However, those funds are dwindling, leaving a gap in services. The impact is being felt across the city, with shelters reporting increased demand and limited capacity.
The situation is particularly concerning as winter approaches, bringing colder temperatures and increased health risks for those living outdoors. Local organizations are bracing for a surge in need and are actively seeking alternative funding sources to maintain essential services. Voters will decide on Proposition 409 in November, which could provide a significant boost to behavioral health infrastructure in the Valley.
