Feb. 4 Update
The government funding bill passed by Congress yesterday carries some good news, including a $7.2 billion increase for the Department of Housing and Urban Development, and language requiring HUD to continue funding Continuum of Care (CoC) grants.
Passed as part of the bipartisan agreement to end the brief government shutdown, the legislation provides a total of $77.3 billion for HUD in Fiscal Year 2026. This is a huge win, considering that previous versions would have cut critical homelessness and housing programs.
The spending bill provides $34.9 billion for Tenant-Based Rental Assistance, which should be enough to ensure the renewal of existing contracts, according to the National Low Income Housing Coalition. (NLIHC’s analysis) It also increases Homeless Assistance Grants to $4.4 billion over FY 2025. (NLIHC’s budget chart)
Ohio’s Congressional delegation mostly voted along party lines. It was a complex bill covering five budgets and there were other concerns. But from the housing perspective - this is a day of good news, so a big thank you for asking your members to support HUD programs. Advocacy works!
We’re especially thankful to Rep. Dave Joyce (R-Chagrin Falls), who sits on the House Transportation, Housing and Urban Development Appropriations Subcommittee. We also want to give a shoutout to Reps. Mike Turner (R-Dayton) and Joyce Beatty (D-Columbus), who promoted language requiring the administration to continue funding CoC grants.
With ongoing litigation and uncertainty surrounding the administration’s drastic changes to the CoC program – the largest source of funding for homeless services – Congress added provisions that:
- Require HUD to renew all CoC grants expiring in the first quarter of 2026 for 12 months.
- Create a timeline for HUD to renew CoC grants expiring later in the year, assuming HUD is not permitted to issue a new Notice of Funding Opportunity (NOFO).
- Requires HUD to issue its FY 26 CoC NOFO no later than June 1, and deliver funds no later than Dec. 1, 2026.
- States that HUD’s FY26 NOFO must allocate at least 60% of CoC funds to “Tier 1” projects, which provide permanent supportive housing and rapid rehousing services to people experiencing homelessness.
We also appreciate the National Alliance to End Homelessness and the National Low Income Coalition’s efforts to coordinate advocacy surrounding the CoC program and the appropriations process.
Troubling changes to the CoC program and housing first policies may still be coming, but this legislation creates a more rational process and buys providers some time to prepare and advocate. So take a moment to celebrate the win and thank your members of Congress for protecting vulnerable Ohioans.
Jan. 14 Update
The U.S. District Court in Rhode Island has temporarily halted HUD's plans to drastically undermine federal funding for local programs that move people out of homelessness. However, the litigation - and HUD's response to it - have caused a lot of uncertainty about the $178 million in Continuum of Care funding that Ohio was awarded a year ago.
Despite a temporary restraining order issued in December, HUD threatened to introduce a revised “Notice of Funding Opportunities” (NOFO) that would still disrupt the CoC program. After the plaintiffs objected, the court ordered HUD to submit a plan to process CoC renewal grants according to the original FY 2024-2025 CoC awards that HUD announced a year ago.
We are thankful to our friends at the National Alliance to End Homelessness, the National Low Income Housing Coalition, and other organizations for challenging HUD’s reckless policies in court. We expect to have more information about HUD’s plans by the end of the week.
Here’s a brief recap:
- Dec. 23: U.S. District Court issued a preliminary injunction that orders HUD to “preserve the status quo ante that existed under the FY24-25 NOFO” and required the administration to lay out next steps “by taking all steps necessary to process eligible renewals for FY 2025 CoC funding.”
- Dec. 30: HUD submits FY24-25 CoC NOFO Implementation Plan saying it will reopen the NOFO on Jan. 6 and “accept eligible renewal project applications” that it would likely review applications by May 1.
- Early January: The plaintiffs believe HUD’s plan to reopen the application process doesn’t comply with the court’s order. The plaintiffs and HUD enter discussions file a joint motion to extend the Jan. 6 deadline.
- Jan. 8: HUD announces a revised implementation plan announcing the intention to process renewal project funding under the original FY24-25 NOFO. CoCs don't need to submit applications for FY25 renewal projects, but they will need to communicate their intention to request renewal funding (HUD has not indicated how CoCs should communicate their intentions). CoCs that want to reallocate renewal funding to a new project will need to submit an application.
While plaintiffs appear likely to win based on the court's preliminary rulings, HUD warned that if they win at the final stage of the case they intend to reinstate the December NOFO.
Agencies that had expected to receive FY25 CoC funding this month and in coming months should expect delays. Due to HUD's actions, and the ongoing litigation, it appears unlikely that CoC funds won’t start flowing until this summer at the earliest.
We remain hopeful that HUD will comply with the spirit of the court’s order to process FY 2025 CoC renewal grants so that agencies can continue helping Ohioans with disabilities overcome long bouts of homelessness and regain stability.
In the meantime, we continue to urge Congress to include an amendment in an upcoming appropriations bill that would require HUD to honor its prior funding commitments and renew existing CoC grants.
Sincerely,
The COHHIO Team
CoC Program Advocacy
The uncertainty caused by HUD’s reckless behavior is traumatic for
residents who are wondering if they’re going to have to return to homelessness.
Thanks to your advocacy we know that several key members of Ohio’s Congressional Delegation have reached out to HUD for answers. But they need to understand that the threat isn’t over. So please keep advocating for Congress to demand HUD honor its prior commitments to fund housing programs and follow an orderly process to prevent the displacement of 10,000 stably housed Ohioans.
Call or email Ohio Senators Bernie Moreno and Jon Husted, and your member of the U.S. House of Representatives. Below are some key points to include in your message.
- HUD recently withdrew its last-minute changes to the Continuum of Care program to make new revisions. This is causing even more uncertainty for the largest source of federal funding to address homelessness.
- Current CoC grants begin to expire in January, with more programs running out of funds each month. Issuing a new FY 2025 Notice of Funding Opportunity (NOFO) will create huge funding gaps for Ohio agencies.
- If we let HUD carry out this reckless plan, it will force 10,000 formerly homeless Ohioans out of their homes and back into the streets. These are people with disabilities, including seniors, survivors of domestic violence, veterans, and families.
- Please tell HUD to honor its prior funding commitments and follow a more orderly process: include a provision in an upcoming appropriations bill that requires HUD to renew all existing CoC grants for a 12-month period to prevent unnecessary funding gaps.
We also encourage you to provide an example or personal stories about how a CoC-funded program helped transform someone’s life. Or how HUD's actions will result in landlords losing rental income, or providers forced to close programs and detail who will be evicted—seniors, babies, people with disabilities
In most cases you will have to leave a voicemail or receive an auto-response email, but these messages help inform members of Congress on which issues to focus on. If you do directly interact with a member or their staff, please let us know if you so we can follow up with them. (Email Advocacy and Policy Coordinator Elizabeth Martindale)
Thank you!
What you need to know about Trump Administration planned changes to HUD's Continuum of Care program
1. What is HUD’s Continuum of Care Program?
- The largest federal grant funding source for homelessness services and housing
- HUD administers the CoC program to fund: Permanent Supportive Housing, Rapid Rehousing, Transitional Housing, and supportive services to move people out of homelessness
- Up to 90% of CoC funding renews ongoing projects that serve people with disabilities and households experiencing homelessness
2. Recent Administrative Streamlining
- In 2024, Congress approved a two-year funding cycle to reduce local agencies’ administrative workload and maximize assistance to clients
- Highly ranked homeless projects were supposed to auto-renew the second year—no full re-application would be required
- Under this newly streamlined process, in January 2025 HUD awarded $178 million in CoC funding for Ohio
- On Nov. 13, 2025 HUD issued a last-minute FY 2025 Notice of Funding Opportunity (NOFO) to drastically overhaul the CoC Program
- The NOFO capped permanent housing assistance at just 30% of a CoC’s previous allocation; most communities are currently at 85% - 90%
- HUD’s changes would amount to an $80 million cut in federal funding that currently houses 10,000 formerly homeless Ohio households
- The National Alliance to End Homelessness, state attorneys general, and other groups filed lawsuits to prevent the NOFO from taking effect
- On Dec. 8, HUD temporarily withdrew the NOFO saying it would release a revised version in the near future
- CoC funds are Ohio’s largest source of funding for supportive housing and rapid rehousing; most programs will be forced to shut down
- Most residents have disabilities, including mental health and addiction issues; many will return to homelessness
- Ohio communities will see more street homelessness and increased demand for shelter, emergency, and public safety services
5. More information
