Report: About-Face on Permanent Supportive Housing Under Way at HUD

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A review by Politico of leaked internal HUD documents indicate that Continuum of Care Program funding will cap the amount of funds that can be used for permanent supportive housing to as little as 30% of the $3.3 billion Congress had appropriated for 2026.

The Department of Housing and Urban Development (HUD) is contemplating devastating caps on the share of Continuum of Care (CoC) homeless assistance awards that can be used for Permanent Supportive Housing (PSH).

PSH has proven to be an effective tool to prevent and end homelessness, including among older adults who represent the fastest growing population of those experiencing homelessness. Congress has strenuously supported the expansion of PSH through annual appropriations to HUD of funding for CoC awards.

A CoC is a coalition of local or regional housing providers who coordinate to apply jointly for their geographic areas to receive HUD's homeless assistance funding.

Going into 2026, about 87% of HUD CoC funding is used for PSH. Recent media coverage, citing sources inside the agency and leaked internal HUD documents, indicates that HUD's next Notice of Funding Opportunity for calendar year 2026 CoC funding will cap the amount of CoC funds that can be used for PSH to as little as 30% of the $3.3 billion CoC funds congressionally appropriated for 2026.

This dramatic downshift will threaten the housing of about 170,000 people currently in PSH but whose funding for their PSH would evaporate under HUD's reported pivot. Most PSH residents escaped homelessness because of PSH. PSH assists households who have at least one member with a disability with deeply affordable housing connected to services. A 2023 report from the Department of Health and Human Services found that, in 2017, 38.7% of PSH residents were older adults (up from 23.9% in 2007).

LeadingAge is urging Congress to require HUD to continue to fund existing PSH and not impose a cap on PSH funding.