House Republicans Urge HUD to Renew Current Continuum of Care Awards, Citing the Potential for Significant Delays in Funding

By Alayna Calabro, NLIHC Senior Policy Analyst and San Kwon, NLIHC Policy Intern 

House Republicans are warning the Trump Administration against the U.S. Department of Housing and Urban Development’s (HUD) plan to issue a new Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO) for FY2025 funds, according to a Republican-only sign-on letter to HUD Secretary Scott Turner. 

The letter, signed by more than 20 House Republicans and led by Representatives Andrew Garbarino (R-NY) and Nick LaLota (R-NY), urges Secretary Turner to extend for an additional year all existing grants expiring in 2026 under HUD’s CoC program—a program that partners with local communities to provide housing and services to people experiencing homelessness with the goal of moving them into permanent housing. 

In late September, Politico reported a leaked HUD plan to cut more than half of the 2026 funding designated for permanent housing projects in its CoC program and incentivize communities to invest in transitional housing and treatment first approaches. Currently, about 87% of CoC funds ending in 2026 are designated for permanent housing projects. Under the reported policy change, no community could invest more than 30% of its CoC funds in proven solutions like Permanent Supportive Housing or Rapid Rehousing. According to HUD’s internal estimates, this could put more than 170,000 people currently served by the CoC program at risk of experiencing homelessness. 

HUD was expected to announce the funding cap in a new FY2025 CoC Program Competition NOFO this fall. HUD’s unexpected announcement that it would re-issue the FY2025 NOFO—despite an existing two-year funding cycle for FY2024 and FY2025 previously approved by Congress—has raised significant concerns that programs could experience funding gaps before new awards are finalized. The ongoing government shutdown, however, has since delayed the release of the notice. 

In the letter, the Republican lawmakers caution that HUD move carefully in shifting its strategies on homelessness “to avoid destabilizing programs” that serve individuals with disabilities and older adults. “HUD’s adoption of a two-year NOFO cycle has provided predictability and reduced administrative burdens for grantees,” the letter states. “Given the compressed timeline in 2025 and the potential for delays caused by ongoing fiscal constraints, extending current CoC awards for an additional year would provide a stable bridge as the Department transitions to its next strategic phase.” 

“The Department of Housing and Urban Development’s Continuum of Care grant is vital for communities to address homelessness and keep families safe and housed across the U.S. I am proud to lead this letter with Rep. LaLota and 20 Republican colleagues to request that HUD honor its two-year commitment to grantees to avoid any funding gaps and ensure communities get the support they were promised,” Representative Garbarino said in a statement. 

Read the letter here. 

Read Politico’s report on HUD’s plan to cut funding for permanent housing here. 

Read Politico’s report on the letter here. 

Take action to hold HUD accountable and protect CoC program funding here.