Overview
- A reported 100-page draft notice would limit long-term housing to about 30% of the $3.5 billion Continuum of Care budget and redirect funds to mental health, addiction services, and encampment-clearance projects.
- Turner told Scripps News the program must add accountability after years with "no strings attached," offering no specifics or timing, and a HUD spokesperson said no announcement has been made.
- Homelessness advocates warn up to 170,000 people, many elderly or disabled, could lose stable housing and supports if the reallocation proceeds.
- Draft provisions described in reports include two-year caps on some services, cutting guaranteed Tier 1 renewals to 30% from roughly 90%, and new discretion to reject programs over alleged racial preferences or violations of a "sex binary."
- Forty-two Senate Democrats urged HUD to reconsider the plan, while 20 House Republicans pressed for 12-month renewals to avoid gaps as delayed 2026 guidance threatens disruptions for grants expiring January through June.