A group of local governments and nonprofits filed a supplemental complaint in an ongoing lawsuit challenging HUD’s attempts to change the Continuum of Care (CoC) program’s emphasis and criteria for grants.

In Context: In December, a preliminary injunction issued in the case prevented HUD from moving forward with a significantly altered NOFO for 2025, reverting to the previously published FY24-25 NOFO. The FY26 Continuum of Care funding notice has raised similar objections, with the plaintiffs arguing the release for 2026 “bears many similarities to the version the court already determined likely to be unlawful.”

Go Deeper: Read our coverage of the ongoing lawsuit from our January 14 edition and find information on the FY26 NOFO from the June 3 edition. Applications are still due for the current FY26 NOFO August 26.