Gov. Eric Holcomb visited East Chicago, Indiana, a week after declaring an emergency in the city due to lead and arsenic contamination.
The money will help cover costs for organizations providing housing and social services to Indiana's homeless.
The new rule aims to protect people living in low-income, government supported housing units from the harms of secondhand smoke.
A complaint has been settled by the Department of Housing and Urban Development to give current and former East Chicago residents more time, money to relocate.
More than 1,000 residents are eligible for HUD relocation vouchers for new housing.
The cuts will leave many Indiana residents without the valuable services transitional housing provides.
The new clinic will combine Johnson-Nichols Clinic and Centerstone Behavioral Health Services to address both physical and mental needs of clients.
The Shalom Community Center plans to move dozens of homeless people into a new housing complex on the south side of Bloomington.
The Shalom Center received a grant that will help it pay for housing for homeless individuals and families.