Overview
- HUD revised Continuum of Care rules to limit permanent supportive housing to 30% of grants and added new eligibility conditions, with the department pledging a vigorous legal defense of the policy.
- The National Alliance to End Homelessness estimates a $4.6 million reduction could force 406 New Hampshire residents now in permanent housing to lose rental assistance and services when current grants expire.
- Local officials say many grants end between May and July 2026, creating a projected seven-month funding gap, and providers are racing to rework applications due in January.
- Nineteen state attorneys general and two governors have sued to block the changes; New Hampshire did not join the case, though Gov. Kelly Ayotte said she is deeply concerned and will work to limit the impact.
- Providers report vulnerable groups are at risk, including children, veterans, and people with disabilities, and warn that HUD could deny funding to organizations that recognize transgender or nonbinary individuals.