Monday, June 1, 2026HUD Overhauls Federal Homelessness Assistance

WASHINGTON - Today, the Department of Housing and Urban Development (HUD) announced a new Notice of Funding Opportunity (NOFO) for $4.04 billion to better serve America's vulnerable populations through the Continuum of Care (CoC) homelessness assistance program.

"The 'housing first' experiment failed Americans by warehousing the vulnerable without results. This ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels. Housing alone will not solve a crisis driven by addiction and mental illness. Under President Trump's leadership, HUD is making necessary reforms to put recovery first," said Secretary Scott Turner.

The Fiscal Year 2026 HUD CoC Notice of Funding Opportunity (NOFO):

Invests in recovery and self-sufficiency:

This record level of funding is available to communities across the nation to address the root causes of homelessness.

HUD will support organizations that facilitate treatment and recovery and prohibit funding the widespread use of illicit drugs and distribution of paraphernalia. The status quo perpetuates addiction in taxpayer-funded homelessness assistance programs in violation of Federal law.

HUD is making resources available for housing assistance paired with wraparound services to advance recovery and self-sufficiency for homeless Americans. This includes a $1.3 billion investment in new projects, with a priority for Transitional Housing and Supportive Service projects.

Advances outcomes through competition:

This is the most competitive funding opportunity in the history of the CoC program.

By returning the program's focus to solutions and performance, this NOFO requires CoC recipients to scrutinize and prioritize the most successful projects rather than automatically renewing funding to failed providers.

Roots out waste, fraud, and abuse:

To better steward American tax dollars, this NOFO ties funding to performance. This ends a lack of program accountability that has led to waste, fraud, and abuse instead of providing assistance to homeless individuals.

Find the NOFO here.

HUD encourages new applicants. Learn more about the CoC program here.

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