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:

“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.