The recent "Recovery Act," also referred to as the "stimulus package," provides states, localities, and nonprofits with significant resources that can be used to prevent and end homelessness. The funding most directly related to addressing homelessness is $1.5 billion dollars available for homelessness prevention.
HUD is distributing this money to communities across the country. Communities must plan for how to use these funds, and submit those plans to HUD for approval.
These funds can be used for both rapid re-housing of people who are already homeless and homelessness prevention for people not yet considered homeless by HUD. This category can include people considered homeless by federal agencies such as the Department of Education and HHS, but not by HUD - such as people who are living doubled up or in motels.
Significant additional funding that could be used to address homelessness is also available. This funding ranges from additional Community Development Block Grant (CDBG) resources at HUD and Community Services Block Grant (CSBG) dollars at HHS to additional money for the Education of Homeless Children and Youth program at the Department of Edcation.
Agency-specific Recovery Act links have been set up on the websites of every federal agency. Below are a variety of additional links that will give you more information on available "Recovery Act" funds and how to access them.
Federal Government - Recovery.gov
HUD's Homelessness Resource exchange/ - for more information on HUD's $1.5 billion in homelessness prevention funding
Children's Defense Fund memo on how to access Recovery Act funds for children
Policy brief from the National Center on Housing and Child Welfare (NCHCW) on using Recovery Act funds to house child welfare families.