Overview
- HUD’s new guidance limits Continuum of Care dollars for permanent supportive housing to 30% and redirects priorities toward transitional models and treatment- or work‑conditional services, which the agency frames as promoting accountability and self‑sufficiency.
- Applications are due Jan. 14 with awards expected months later, creating a potential funding gap for projects with grants expiring in early to mid‑2026.
- Maine officials say about 1,200 residents could lose stable housing out of roughly 1,800 currently supported, with local health leaders warning that reduced stability could worsen crises such as Bangor’s HIV outbreak.
- Minnesota nonprofits estimate roughly 3,600 residents could be affected and cite a potential national impact of 170,000 people, as bipartisan lawmakers including Rep. Pete Stauber and Sens. Amy Klobuchar and Tina Smith urge HUD to pause the changes.
- Bay Area advocates estimate about $103 million in permanent supportive housing funds is at risk with roughly 6,800 residents in federally supported units, and they say local Housing First and harm‑reduction practices could be penalized under the new scoring rules.