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Investigative Reports

Phoenix Mail Room for Homeless Individuals Loses Funding — ProPublica

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Last updated: October 27, 2025 9:23 am
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Phoenix Mail Room for Homeless Individuals Loses Funding — ProPublica
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ProPublica is a nonprofit newsroom that investigates abuses of energy. Join Dispatches, a publication that spotlights wrongdoing across the nation, to obtain our tales in your inbox each week.

Carl Steiner walked to the window of a small grey constructing close to downtown Phoenix and gave a employee his identify. He stepped away with a field and a cellphone invoice.

The field is what Steiner had come for: It contained black and pink Reebok sneakers to make use of in his new warehouse job.

Steiner doesn’t have a everlasting deal with. His letters and packages are delivered to a mail room for homeless folks within the constructing on the Keys to Change campus, a collaborative of 15 nonprofit organizations that serve these like him.

He and hundreds of others have obtained mail right here for years. They use the deal with for job functions, for treatment, to obtain advantages like meals stamp playing cards and even to vote. And for 20 years, the U.S. Postal Service offered a minimum of 20% of the mail room’s finances.

However final month, the postal service ended its help of $24,000 a 12 months as a result of a close-by put up workplace is “capable of totally serve the group,” a spokesperson mentioned in a press release to ProPublica.

Not like a regular put up workplace, Keys to Change permits folks to obtain mail and not using a authorities ID, a standard drawback for some who’re homeless.

This 12 months, Keys to Change will spend about $117,000 to assist 7,000 folks get their mail. Though the associated fee is minimal relative to the nonprofit’s finances, it’s a “essential half” of serving to folks exit homelessness, mentioned Amy Schwabenlender, the group’s CEO.

“It truly is a priceless factor that we are able to supply to our shoppers,” Schwabenlender mentioned.

The lack of help from the Postal Service comes at a time of uncertainty for one in every of Arizona’s largest nonprofit homeless providers suppliers and comparable organizations nationwide. Keys to Change says it can search donations to maintain the mail room open.

However there will likely be much less cash for such providers as President Donald Trump and his administration take a really totally different method to homelessness than his predecessors.

Trump is asking for massive reductions to help grants, in addition to their restructuring. Greater than half of Keys to Change’s funding comes from authorities agreements, Schwabenlender mentioned.

The president has additionally issued an govt order urging cities to take away individuals who dwell open air by imposing tenting bans and institutionalizing these experiencing psychological well being or substance use problems. The order additionally requires ending help for applications that prioritize housing and providers.

With funding shifting to help a extra punitive method to homelessness, even small applications just like the mail room could possibly be strained. The lack of the Postal Service’s help just isn’t associated to those finances cuts, however for suppliers it leaves yet one more hole to fill. Some, like Keys to Change, mentioned they’ll be pressured to do extra with much less federal help as demand for help is growing.

Report numbers of individuals are in search of assist. Final 12 months, Keys to Change served 20,000 folks, up from 18,000 the 12 months earlier than, in line with the group, which can be seeing the lack of COVID-era aid funding.

“There’s a particular air of uncertainty and worry, and that’s each amongst suppliers and amongst folks experiencing homelessness,” mentioned Donald Whitehead, the chief director of the Nationwide Coalition for the Homeless, a nonprofit group that advocates for homeless folks. Whitehead expects a number of the Trump administration’s modifications will improve, not cut back, the variety of folks on the road.

Carl Steiner opens a field of footwear for a brand new job at a warehouse.


Credit score:
Ash Ponders for ProPublica

First picture: Moreno and Joe Medina within the mail room. Medina has labored there since 2019 and was a former Keys to Change shopper. Second picture: Medina types by means of envelopes to search out mail for the unhoused group the ability serves.


Credit score:
Ash Ponders for ProPublica

Joe Medina has labored within the mail room since 2019 and is aware of a number of the folks he serves by identify.

A former shopper at Keys to Change, he began as a volunteer doing odd jobs on the campus earlier than transferring right into a full-time job within the mail room.

On a current Friday, he meticulously sorted letters into alphabetized bins.

Paul Babcock approached the mail room window and handed Medina an identification card.

However Medina instantly acknowledged Babcock and handed him a bundle.

“Thanks, I’ll see you once more quickly,” mentioned Babcock, who has been homeless on and off since 2012 and used the mail room for all of that point. Babcock opened his supply to discover a sweatshirt. For the chilly climate, he mentioned.

Babcock mentioned having an deal with has helped him whereas he lives on the streets. He has obtained mail from the Social Safety Administration, alternative identification playing cards about 5 instances and chocolate chip cookies from his mom. “I’ve gotten all the pieces from right here,” Babcock mentioned.

When folks don’t retrieve their mail, Medina generally tells others to place the phrase out in order that they know to return get it.

“Those who’re coming for his or her mail are doing one thing for themselves, regardless of how small,” Medina mentioned. Some go to a number of instances a day hoping for a letter or a bundle, he mentioned. However generally they go away disillusioned.

Medina greeted a girl by identify, earlier than retreating to verify the bins. “Nothing proper now,” he instructed her.

In 2009, the Postal Service threatened to chop its funding for the mail room, in line with reporting by the Arizona Republic. The contract had come up for assessment as a result of the placement doesn’t generate income. “We’ve been giving them a donation, and we are able to not do this,” a postal official instructed the newspaper on the time.

The Postal Service lowered its funding however didn’t remove it and mentioned it could create a “public service” contract for the homeless providers supplier. It’s unclear if it moved ahead with that plan. The newest Keys to Change mail room contract seems unchanged from the 2009 settlement, in line with Schwabenlender.

A Postal Service spokesperson declined to touch upon the phrases of the mail room settlement, calling such contracts “confidential.”

When Postal Service officers contacted the Keys to Change in Might to tell the group that the contract would finish, they mentioned the settlement “requires monetary transactions that embrace income technology,” in line with emails offered to ProPublica.

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In Maricopa County, which incorporates Phoenix, extra individuals are getting into homelessness than leaving. For each 19 new folks experiencing homelessness, 10 folks discover housing, in line with a regional nonprofit that coordinates homeless providers.

After Tammy Mcauley left an abusive relationship, her automotive broke down, inflicting her to lose her job as a housekeeper. She’s been homeless for a 12 months and most not too long ago lived in a shelter.

She walked as much as retrieve her mail along with her canine, Mousie, perched in a stroller.

“It makes it in order that we are able to nonetheless be folks,” Mcauley mentioned of the service.

Later that day, a FedEx truck pulled as much as the mail room. The motive force dropped off two bins from Walmart.

Medina knew who they had been for and set them apart till they got here to get them.

Medina greets a person exterior the Keys to Change mail room.


Credit score:
Ash Ponders for ProPublica

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