Overview
- Leaked draft guidance indicates HUD would sharply reduce permanent housing support in the Continuum of Care program and prioritize treatment mandates, work requirements, and encampment enforcement.
- The reported plan would limit long-term housing to about 30% of the roughly $3.5 billion budget and steer two-year, time‑limited services to the forefront of funding.
- HUD has told reporters no official announcement has been made, while Turner said the agency is pursuing greater accountability for how CoC funds are spent.
- Additional proposed elements include cutting guaranteed Tier 1 renewals to roughly 30% and allowing HUD to reject programs over alleged racial preferences or policies that “violate the sex binary,” according to reporting on the draft.
- Advocates warn as many as 170,000 people in permanent supportive housing—many disabled or older—could face disruptions, and bipartisan letters from 42 Senate Democrats and 20 House Republicans urge safeguards to prevent funding gaps in 2026 grants.