The Hospitality Hub Team Photo Credit: Hospitality Hub

Efforts to address homelessness in Memphis have been impacted by social services cuts from the Trump administration’s One Big Beautiful Bill.

As leaders from the Hospitality Hub shared the challenges they’re facing during the summer, Memphis City Council members pointed out that these are the direct results of federal reductions in funds.

Leaders from the Hub confirmed that changes in the federal budget have impacted ways the city serves unhoused individuals.

Kelcey Johnson, executive director of the Hospitality Hub, said factors such as extreme heat, school being out, and informal support have increased the need for resources during the summer.

During a Tuesday meeting of the council’s Housing and Community Development Committee, the Hospitality Hub asked $12,000 to pay for hotel rooms to shelter occupants. Kelcey Johnson, executive director of the Hospitality Hub, said this would be enough to shelter six families for 45 days at the rate he’s being charged.

Johnson highlighted the strain being put on the Hub as the city’s primary Cooling Center. He said as of June 1, the Hub is operating at over 200 percent occupancy with 70 women and 44 children currently being sheltered between its campus, partnering hotels, and its Hub studios.

In addition to its campus, the Hub uses community centers and libraries as Cooling Centers until 3:00 p.m. After that time, they shut down and operate the Hub as a Cooling Center until the temperature drops “to a safe point.”

He clarified this is usually when the heat index is less than 105 degrees. Johnson said they pay for families with children to go to hotels when the center closes. Councilman Jeff Warren noted that this causes a problem for single people.

Johnson said women and children experiencing homelessness are underserved. He said over the last few years, the city lost “250 beds for women and children.”

“Men have it made in this city,” Johnson said. “You have a 130-bed shelter in South Memphis that’s awesome, and you have the [Memphis] Union Mission that shelters 425 men… Women just don’t have those options.”

The director said this was the result of the closure of the Salvation Army Family Center and the Family Safety Center of Memphis and Shelby County, as well as reduced occupancy at the Single Women’s Lodge, among other factors.

According to Johnson, the Salvation Army center closed due to “a million-dollar shortfall,” and the Family Safety Center shut down “due to Trump cuts.”

Johnson pointed out that the council has been integral in the development of Hub North which will be located in the New Chicago community. The campus plans to have 60  680-square-foot cottages.

The launch is slated for July of 2027, which Johnson said is later than what they initially promised the council. He said this was because they accepted money through a program to help “get everything built.”

Having to have approval from both the city and county has also stalled progress. Johnson added that they’re not in a deficit for the project.

Council members pointed out that the Hospitality Hub is one resource for addressing homelessness, and looked to the city’s Division of Housing and Community Development to provide more updates on federal funding cuts and shortfalls holistically.

“This is a direct result of the Big Beautiful Bill that cut social services,” Warren said.

“Although we’ve been very grateful for the highway patrol and the other people that have come to help us take care of crime, unless we get people off the streets and we get them someplace to work, we’re going to have crime when these guys go away.

“Just bringing those people are not helping us. We got an election coming up. We now have the possibility of getting three separate people from Memphis that are Democrats going to Washington.

“It’s going to take a 50 percent turnout of voters here in Memphis to make that happen. 

“Wherever you live in Memphis, remember part of what’s going on here is the social cuts that came with the Big, Beautiful Bill, and we all need to get out and vote to help our people that need the help here.”