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Add us on GooglePresident Donald Trump is looking to overhaul the federal homelessness policy, moving away from housing subsidies and toward mandatory treatment for people struggling with mental illness or substance abuse. The administration is also pursuing policies that would make sleeping or camping on public streets illegal.
According to the New York Times, the shift has been heavily influenced by one organization — and one billionaire.
A team from Cicero Institute, a think tank founded by billionaire and Trump ally Joe Lonsdale, has traveled across the country pushing lawmakers to criminalize public camping and sleeping on streets.
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According to the New York Times, 21 states have considered camping bans or other homelessness laws backed by Cicero, with 16 ultimately passing them. The group is now working with the Trump administration to redirect federal funding away from housing subsidies and toward forced treatment programs.
The Housing First debate
Homelessness has neared record highs. In January 2025, when Trump took office for his second term, nearly 746,000 people were experiencing homelessness. The increase has led some Republicans to embrace tougher measures to clear streets and, according to the New York Times, no group has pushed harder than Cicero Institute.
The group’s central target is Housing First, the current federal policy on homelessness. The measure prioritizes getting people into stable housing before addressing issues such as addiction or mental health. The policy was embraced by Trump during his first term. The administration now argues the policy ignores the root cause of homelessness by providing housing subsidies but making treatment optional — a sentiment backed by Cicero.
Critics, however, argue that housing is itself a crucial first step in helping people stabilize their lives and that there is limited evidence that forcing people into treatment will reduce homelessness.
In July 2025, the administration issued an executive order called “Ending Crime and Disorder on American Streets,” which includes a camping ban.
“Obviously, our work has been one of the main influences” in shaping administration views, Mr. Lonsdale said in an interview with the New York Times.
Lonsdale, who is the co-founder of Palantir, declined to tell the New York Times how much he’s spent on the institute, but said it’s “well less” than $15 million a year, calling the amount “very small” for the influence it has.
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Cicero’s success
Several states have already been swayed by Cicero. The group found its first success in 2024 in Missouri, where a camping ban was issued as part of a larger bill. The law was struck down for procedural reasons a year later, but Cicero used the momentum to help implement camping bans in states like Florida, Oklahoma, Mississippi and Kentucky.
Trump’s backing of Cicero’s camping ban and homelessness policy has also helped it gain momentum. Take Indiana for example. According to the New York Times, Cicero lobbyists made two attempts to implement a camping ban in the conservative state — but was only successful on the third attempt after Trump labeled the issue a presidential priority.
Lonsdale’s fight
Lonsdale founded Cicero eight years ago with the goal of promoting “liberty, accountability, and transparency.” At the time, there was no mention of homelessness and Lonsdale has no direct experience with homeless services or the issue in general.
According to the New York Times, Lonsdale — who is known for his controversial social media posts, which includes a recent post calling for public hangings of repeat offenders — said he is fighting homelessness to defend “capitalist society.” He’s also claimed that liberal social service groups are actually working to increase homelessness.
“Some of them are cynical Marxists who clearly want mayhem and want to show that our civilization is broken,” he told the New York Times.
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Rinna Diamantakos is a contributing editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
