NLIHC President and CEO Renee M. Willis Statement on the Impact of the Longest U.S. Government Shutdown on the Low-Income Housing Community
Nov 14, 2025
Washington, D.C. – "On Wednesday, November 12, President Donald Trump signed legislation funding the government through January 30, 2026, ending the longest shutdown in U.S. history. Shortly after the shutdown ended, the administration announced a change to the funding notice for the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) program, the main federal funding source for homelessness. NLIHC opposes these policy changes, which will disrupt homelessness response systems nationwide and increase homelessness. These actions create additional hardship for the nation’s lowest-income and most vulnerable individuals, undermine HUD’s mission, and threaten the stability of essential resources for millions of people.
After 43 days of missed work and pay for federal employees, Congress passed a temporary funding measure, known as a continuing resolution (CR), to restore operations. The CR does not extend Affordable Care Act (ACA) tax credits, which are set to expire at the end of the year, nor does it prevent the administration from rescinding previously appropriated funds. While the CR restores Supplemental Nutrition Assistance Program (SNAP) funding, conflicting court orders create uncertainty about when full payments will resume nationwide.
During the shutdown, HUD ensured that households relying on rental assistance received timely rent payments, protecting tenants from eviction. However, the new policy change will significantly reduce housing funding, further harming long-term housing programs and homelessness resources, which were already facing significant challenges from the administration.
The administration’s changes would cut CoC funding for permanent supportive housing programs, such as Housing First, by more than half and redirect funds to transitional housing, including programs with additional barriers such as work and service requirements. This shift could put approximately 170,000 formerly homeless people, including families with children, people with disabilities, veterans, and older adults, at risk of returning to homelessness.
November is National Homeless and National Homeless Youth Awareness Month, recognizing the more than 2.5 million children and families who experience homelessness each year. It is imperative to support evidence-based strategies that provide people experiencing homelessness with stable, affordable housing quickly and without prerequisites, ensuring that federal resources are in place to lower the number of people who lose their home each year, and help our local communities feel housing secure after enduring disruptions to essential services during the shutdown. Instead, this administration has chosen to recognize National Homeless Awareness month by diverting funding for proven solutions to homelessness to short-term programs and policies that impose work reporting requirements, criminalize people experiencing homelessness, and forcibly hospitalize unhoused individuals.
The administration continues to reduce HUD’s workforce and implement policies that shift focus away from effective solutions to the affordable housing and homelessness crisis. Without adequate safeguards and funding, these actions will cause long-term damage to essential housing services and further limit HUD’s ability to meet community needs.
Rather than dismantling programs that support housing stability, Congress must protect and expand federal investments in proven solutions to homelessness. This requires a fiscal year 2026 spending bill that increases funding for HUD’s affordable housing and homelessness programs, including full renewal of all housing voucher contracts to ensure no household loses assistance. Congress should also require HUD to extend previously awarded CoC contracts, rather than implementing the proposed harmful funding changes.
Sustained, robust funding for critical housing programs will provide low-income renters with security and allow homelessness programs to continue serving those most in need.”
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