Cut proposed in US aid for placing homeless in hotels

August 17, 1987

The United States Department of Health and Human Services has proposed new regulations that would sharply reduce aid to cities for keeping homeless families in hotels, according to reports by the New York Times and the New York Daily News. The federal government now pays half of the cost of housing the families in hotels indefinitely.

Under the new rules, cities would be reimbursed only for the first 30 days, a move that could cost the cities millions of dollars, said the reports.