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6d ago

HUD Overhauls Homelessness Grants, Capping Permanent Housing and Tying Funds to Treatment and Work

The $3.9 billion shift steers Continuum of Care dollars to short-term, conditional programs, prompting warnings of funding gaps before awards expected in May.

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People at Lake Dot Park in downtown Orlando, on Friday, April 4, 2025. The Homeless Services Network of Central Florida held a press conference to release their 2025 numbers from the Point-in-Time Count – the nationwide census of people who were homeless on a given night in late January. (Ricardo Ramirez Buxeda/ Orlando Sentinel)
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Overview

  • The new notice limits permanent supportive housing to about 30% of Continuum of Care funding and prioritizes projects that require treatment participation, work, and encampment enforcement.
  • Guaranteed renewals for existing projects drop to roughly 30% Tier 1 funding, moving much of the program’s roughly $3.9 billion into competitive awards.
  • HUD Secretary Scott Turner says the overhaul restores accountability to nearly $4 billion in grants, while advocates warn it could push up to 170,000 people out of housing.
  • Applications are due Jan. 14 and awards are not expected until May 1, raising the risk of lapses as many grants expire between January and June 2026.
  • Local providers report immediate threats to residents and services — including more than 3,600 people in Minnesota, several hundred in Orlando, and Los Angeles networks — as new eligibility favors areas with camping bans, ICE cooperation, and other standards.