Arizona is sending $16 million in grant funding to community organizations and local governments across the state to expand homeless shelters and keep support services running. Gov. Katie Hobbs and the Arizona Department of Housing announced the awards, which will help recipients construct new shelter units and sustain programs for Arizonans experiencing homelessness.
According to KTAR News 92.3 FM, the money comes from the Arizona Housing Trust Fund and will go to 19 recipients altogether. The Arizona governor's office separately confirmed that the funding, drawn from the State Housing Trust Fund, is meant to help community organizations and local governments construct more shelter units.
The largest individual grants went to UMOM New Day Centers and Flagstaff Shelter Services, which will each receive $2 million, per the KTAR report. UMOM said the investment will provide safe shelter, stability and a path forward for hundreds of women experiencing homelessness each year.
Where the Rest of the Money Is Headed
Several organizations and municipalities are set to receive $1 million apiece, including the City of Phoenix, the City of Tucson, Keys to Change, Copa Health and the Primavera Foundation, the station's report notes. Central Arizona Shelter Services is slated for $901,000, while the Phoenix Dream Center will get $700,000. A New Leaf and the Justa Center will each receive $500,000.
The grant funding will support organizations in Mesa, Tucson, Flagstaff, Prescott, Sierra Vista, Kingman and Bullhead City, extending the shelter push well beyond the Phoenix metro area, according to the same account. Gov. Hobbs said the funding will help more Arizona families access shelter and services to get back on their feet.
A Crowded Field of Applicants
Demand for the grant dollars far outstripped supply. Ruby Dhillon-Williams said the department received 78 applications for the $16 million in available funding, and that the department is focused on funding solutions to reduce the number of unhoused Arizonans, per the KTAR report.
The announcement adds to a string of recent state investments in homelessness response. In October 2025, Gov. Hobbs announced $13.5 million in grants aimed at eviction prevention, homelessness response and referral efforts across Arizona, according to the governor's office. Years earlier, the Arizona Department of Housing said it awarded nearly $20 million from the newly created Homeless Shelter and Services Fund to local governments for shelter and other services, as reported by housing.az.gov.
Homelessness Numbers Still Climbing
The new grants land against a backdrop of rising homelessness counts statewide. Arizona's 2024 Point-in-Time count came in at 14,737, a 3 percent increase from 2023, though the same count showed a 4 percent reduction in unsheltered homelessness, according to the Arizona Department of Economic Security. In the Phoenix region specifically, the 2025 Point-in-Time count showed a further 3 percent increase in people experiencing homelessness, particularly among those living unsheltered, per the Maricopa Association of Governments.
KTAR's report also notes that the Hobbs administration has made broader investments in homelessness response and transitional housing, including $60 million through the Homeless Shelter and Services Fund and $38 million through the State Housing Trust Fund for housing insecurity prevention and rapid rehousing. The state has also provided additional funding for housing programs targeting veterans and people re-entering communities after involvement with the criminal justice system, the outlet reported.
