The Trump administration announced a major shift in $3.9 billion in homelessness funding with the release of the FY 2025 Continuum of Care (C0C) Competition and Youth Homeless Demonstration Program Grants Notice of Funding Opportunity (NOFO) last week.
- In Context: The changes realign funding priorities with President Trump’s Ending Crime and Disorder on America’s Streets Executive Order, emphasizing transitional housing with work requirements and mandatory treatment over permanent supportive housing.
- The NOFO allows HUD to review past performance and disqualify projects that do not align with the administration’s views on harm reduction, race, or gender identity.
By the Numbers:
- Currently, 87 percent of CoC funds go towards permanent housing, but the new NOFO limits the amount of funding for permanent housing to only 30 percent.
- As many as 170,000 people who rely on CoC assistance for stable, affordable housing are at risk of returning to homelessness.
What They’re Saying:
- National Alliance to End Homelessness released important resources on what everyone needs to know about the NOFO and how the recently ended shutdown will impact funding streams. CEO Ann Oliva said:
“People all over this nation have overcome homelessness and stabilized in HUD’s permanent housing programs. Many are just beginning that process and getting a shot at a new life. HUD’s new funding priorities slam the door on them, their providers, and their communities. Make no mistake: homelessness will only increase because of this reckless and irresponsible decision.”
- 42 Democrats, led by Senate Appropriations Committee Vice Chair Patty Murray (D-WA), sent a letter to HUD Secretary Scott Turner to “express our deep concerns regarding the instability the entire homeless support system could face if funding delays, uncertainty, and rushed policy changes continue.”
- HUD Secretary Scott Turner posted a video on X about the “Trump administration ditching the homeless industrial complex.”
What’s Next: Applications for funding are due on January 14, 2026 with an anticipated award date around May 1, 2026. The National Alliance to End Homelessness put out a call to action to Congress to stop HUD from implementing this program, including an updated advocacy guide.