Nation’s Mayors Call on Congress to Renew HUD Continuum of Care Grants, Safeguard Housing for Vulnerable Residents

In a newly released letter, bipartisan coalition of 180+ mayors urges federal lawmakers to renew expiring grants, warning of widespread disruptions without action

WASHINGTON, D.C. - More than 180 Democratic, Republican and Independent mayors from across the country have signed on to a newly released letter by the U.S. Conference of Mayors urging Congress to renew all Continuum of Care (CoC) grants set to expire in 2026 - a step the mayors say is essential to preventing widespread disruptions to supportive housing for the homeless in communities across the country.

In the letter - sent Wednesday to House Speaker Mike Johnson, House Minority Leader Hakeem Jefferies, Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer and key committee leaders - mayors called on Congress to direct HUD to extend all existing grants for an additional 12 months. Without swift action, they warn, federal funding changes will jeopardize housing for as many as 170,000 vulnerable Americans - including military veterans, disabled individuals, elderly people and families with children. One provision would cap how much state and local grantees can invest in permanent housing at just 30 percent, down from 87 percent this year.

According to the letter:

It is far too late in the year for HUD to initiate a new grant process for funds that will begin to expire in January 2026. Earlier this year, when grant agreements for the last round of funding were delayed, state and local governments had to absorb the gaps to ensure rents were paid to landlords and programs could continue to operate. It is simply not feasible for us to absorb these gaps again in 2026.

The Department of Housing and Urban Development (HUD) announced sweeping changes to the management of the $3.5 billion Continuum of Care (CoC) program to be implemented in 2026. If implemented, the changes will destabilize supportive housing systems in cities across the nation, with many programs projected to exhaust their funding in the first half of the year.

U.S. Conference of Mayors President David Holt emphasized that the stakes could not be higher for cities or the people they serve.

"Regardless of one's political party or ideology, the fact is that these existing grants are keeping people off of the streets right now," Mayor Holt said. "Mayors are on the front lines of this nation's housing challenge, and we understand that the programs supported by Continuum of Care grants are essential to helping Americans retain stability and a roof over the head. Without the action outlined in our letter, families, seniors, veterans and people with disabilities will lose their housing. The streets in our cities will see an increase in homelessness, and no one wants that. We're urging Congress to renew all HUD CoC grants expiring in 2026 for another 12 months so we can support our communities, and especially those who rely upon these services."

The full letter can be read here and below.

Dear Speaker Johnson, Minority Leaders Jefferies, Majority Leader Thune, Minority Leader Schumer, Chair Collins, Ranking Member Murray, Chair Cole, Ranking Member DeLauro, Chair Hyde-Smith, Ranking Member Gillibrand, Chair Womack, Ranking Member Clyburn:

As the nation's mayors, we urge you to act quickly to prevent the Department of Housing and Urban Development (HUD) from upending already-approved homelessness grants. At a time when rates of homelessness are at an all-time high, HUD's unprecedented plan would destabilize community efforts to respond to homelessness and cause havoc locally to homelessness programs.

HUD plans to severely limit the amount of Continuum of Care (CoC) Program funding that can be used for permanent housing to only 30 percent. Currently, 87 percent of the $3.5 billion program is used for permanent housing grants. This change alone would withhold critical assistance for at least 170,000 formerly homeless older adults, people with disabilities, veterans, and families with children, forcing them back on the street after finally achieving housing stability.

It is far too late in the year for HUD to initiate a new grant process for funds that will begin to expire in January 2026. Earlier this year, when grant agreements for the last round of funding were delayed, state and local governments had to absorb the gaps to ensure rents were paid to landlords and programs could continue to operate. It is simply not feasible for us to absorb these gaps again in 2026.

In November, HUD finally released the new NOFO but on December 8th HUD withdrew the notice without any clear indication of when it would be reissued and what revisions will be made. The withdrawal exacerbates the delays in funding and does not address the concerns to the permanent housing program funding caps. It further demonstrates why Congressional action to institute a 12-month renewal is necessary to avoid further problems with CoC funding.

At a time when communities across the country are grappling with increases in homelessness and soaring housing costs, these types of seismic shifts-without adequate notice-will only push more of our most vulnerable residents out onto the streets and leave us with even fewer resources to respond.

HUD's action also undermines Congress's authority. Congress already authorized HUD-with strong bipartisan support- to run a two-year CoC Program for fiscal years 2024 and 2025, and communities already went through a robust two-year planning process.

We strongly urge you to take action to direct HUD to renew all existing Continuum of Care grants expiring during calendar year 2026 for one 12-month period. This will ensure there are no unnecessary gaps and delays in resources and provide communities more time to plan accordingly. Such action would have no budgetary impact.

Homelessness is a nonpartisan issue impacting every community across our country. As mayors, we are doing everything we can at the local level to address this pervasive challenge, but we need continued federal support to keep people housed and bring more people home.

Sincerely,