Overview
- The new Continuum of Care notice limits long‑term housing to roughly 30% of funding and redirects billions to short‑term programs that require treatment, impose work rules and prioritize encampment enforcement.
- Eligibility provisions favor jurisdictions that prohibit and enforce public camping and drug use, require cooperation with ICE and adherence to involuntary commitment standards, and exclude applicants who deny a sex binary or distribute drug paraphernalia under harm reduction.
- HUD announced $3.9 billion in competitive grants as Secretary Scott Turner argued the changes will promote independence and restore oversight in a program that previously renewed most projects with few strings.
- Providers and advocates warn up to about 170,000 people in permanent supportive housing could lose stability, with a tight application window through Jan. 14 and awards expected around May creating a potential funding gap into early 2026.
- Opposition mounted quickly, with 42 Senate Democrats urging a reversal and renewal of expiring grants, more than 20 House Republicans seeking a phase‑in to avoid disruptions, and local estimates of significant losses in Minnesota, Orlando and Los Angeles.