HUD policy change places nearly 200,000 at risk of homelessness

HUD policy change places nearly 200,000 at risk of homelessness

By Lynda Carson - November 13, 2025

A Department of Housing and Urban Development (HUD) policy change in the Continuum of Care Program (COC), may place nearly 200,000 people at risk of becoming homeless. Perhaps as soon as sometime during January of 2026.

That’s right. According to members of the US Senate, the potentially illegal policy changes being made by HUD, and HUD Secretary Scott Turner, could result in nearly 200,000 older adults, chronically homeless Americans with disabilities, veterans, and families being forced back onto the streets, as homeless, unhoused persons.

Additionally, according to a November 13, 2025 article by Becker’s Behavioral Health, in part it says, “The Trump administration is preparing to further shift federal homelessness funding away from harm reduction and toward involuntary commitment, according to a confidential grant-making draft document obtained by The New York Times.

The proposed changes are slated to affect funding as soon as January, would reduce support for permanent housing and redirect billions toward short-term intervention focused on work requirements, treatment mandates and encampment enforcement.”

November 13, 2025, Senate Press Release.

In a November 13, 2025, press release from members of the US Senate, in part it says, “Today, Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee; Senator Elizabeth Warren (D-MA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs Committee; Senator Kirsten Gillibrand (D-NY), Ranking Member of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies; and Senator Tina Smith, Ranking Member of the Senate Banking Subcommittee on Housing, Transportation, and Community Development led a letter alongside their Democratic colleagues to Department of Housing and Urban Development (HUD) Secretary Scott Turner calling on him to immediately halt reported plans to make drastic changes to the Continuum of Care (CoC) program, which could result in nearly 200,000 Americans being forced out of their housing and back into homelessness.

The 42 Senate Democrats call on Secretary Turner to instead use the authorities that Congress already gave him to expeditiously renew existing CoC grants for fiscal year 2025 to prevent massive disruption and frightening uncertainty for hundreds of thousands of vulnerable Americans in the coming months.

“We write to express our deep concerns regarding the instability the entire homeless support system could face if funding delays, uncertainty, and rushed policy changes continue,” write the Senators. “HUD must immediately reconsider these harmful and potentially illegal changes that could result in nearly 200,000 older adults, chronically homeless Americans with disabilities, veterans, and families being forced back onto the streets. As Secretary, you have the authority to avoid this worst-case scenario by carrying out the previously planned and Congressionally authorized two-year NOFO, and we strongly urge you to do so expeditiously.”

The lawmakers note that the reported and potentially illegal plans to upend the program, which is the largest source of federal grant funding to prevent homelessness, would cause sudden and significant shortfalls and real pain across the country. Specifically, they write: “The most troubling of these changes is a new, arbitrary cap on the amount of funds that may be used for permanent housing. Currently, 87 percent of CoC funds support permanent housing, but the new NOFO reportedly limits the amount of funding for permanent housing to only 30 percent. This appears to be in contravention of the McKinney-Vento Homeless Assistance Act, undermines local decision-making authority, and ignores decades of research that has proven that permanent supportive housing and rapid rehousing are less costly and more likely to be successful in providing long-term stability than other strategies, particularly for chronically homeless people and families.”

“Each new administration can make policy changes when they take office,” they continue. “While we may not always agree on those policy changes, we should never have to question whether agency officials will faithfully follow the law and work to minimize harm to our constituents and communities when implementing those new policies. Reports of HUD intentionally blocking staff from examining the legality of the fiscal year 2025 NOFO changes with its own attorneys are deeply troubling.”

The Senators note that, since January 20, repeated, chaotic policy changes affecting the program have created needless, costly uncertainty for communities across the country—and the Department has failed to communicate clearly with stakeholders and Congress about its plans. “For months, our staffs have sent HUD countless questions about its intents and actions around CoC funding that have remained unanswered, undermining Congress’s ability to carry out its legislative and oversight functions. Real people in every community across the country rely on these funds to address homelessness. The funding competition process for fiscal year 2025 has not begun, and with CoC project awards beginning to expire in less than two months, HUD is simply out of time.”

“There is a better way forward,” they conclude. “HUD’s current path risks causing a dangerous spike in street homelessness and creating chaos in urban, suburban, and rural communities alike by forcing nearly 200,000 chronically homeless Americans with disabilities and families back onto the streets. We implore you to make the better choice and expeditiously renew current CoC grants for fiscal year 2025 as authorized by Congress to protect communities and avoid displacing thousands of our nation’s most vulnerable individuals.”

The November 13, 2025, Senate letter to HUD Secretary Scott Turner may be read by clicking here.

HUD's attack on Housing First policies.

In a past 2025 press release, HUD Secretary Scott Turner joined the convicted felon President Trump, in attacking our nation’s ‘Housing First’ policies that assist homeless people getting into housing, and in part it says, “U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner applauded President Trump’s Executive Order (EO), “Ending Crime and Disorder on America’s Streets.” The EO restores accountability to homelessness programs by ensuring Americans suffering from severe mental illness or addiction get treatment to support recovery and self-sufficiency. By taking action to redirect federal resources toward programs that tackle substance abuse as part of addressing homelessness and protecting public safety, today’s action represents a shift away from the failed “housing first” policies that ignored the relationship between homelessness, illicit drugs, and mental illness.”

In contrast to HUD Secretary Scott Turner and the convicted felon President Trump, in a statement by the National Low-Income Housing Coalition (NLIHC), about Housing First policies, in part it says, “Despite its proven success and bipartisan support in Congress, during its tenure the Trump Administration sought to replace Housing First models with programs that would deny people and families experiencing homelessness stable housing if they were unable to maintain treatment or attain perfect sobriety. This shift in policy not only ignored the decades of research attesting to the validity of Housing First, but failed to address the underlying, systemic causes of homelessness and housing instability.

Under past Republican and Democratic Administrations, HUD and the U.S. Interagency Council on Homelessness (USICH) have endorsed Housing First as a best practice to ending homelessness and the model has enjoyed bipartisan support from congressional leaders. First incorporated into federal recommendations under the George W. Bush Administration, Housing First was credited with reducing homelessness by 30% between 2005 and 2007. During the Great Recession, implementation of RRH under the Obama Administration helped an estimated 700,000 people at-risk of or experiencing homelessness find stable housing.”

November 13, 2025, letter from the National Association of Counties, National League of Cities, and The United States Conference of Mayors, to HUD Secretary Scott Turner.

In a November 13, 2025, letter from the National Association of Counties, National League of Cities, and The United States Conference of Mayors, to HUD Secretary Scott Turner, in part it says, “Dear Secretary Turner, On behalf of the nation’s mayors, cities and counties, we write to respectfully urge you to adhere to the Congressionally authorized two-year Continuum-of-Care (CoC) program cycle by renewing current CoC grants for the second 12-month period. As trusted administrators of the CoC program, we recognize the vital intergovernmental partnership between the U.S. Department of Housing and Urban Development (HUD) and local governments to improve housing opportunity and reduce homelessness in our communities. It is in that context that we wish to share our concerns over a reported notice of funding opportunity (NOFO) under consideration at HUD.

We have serious concerns about the timing of a new grant competition, particularly one with revised program parameters, given that existing CoC grants are set to expire in January. The critical nature of this program demands a predictable grant cycle to avoid funding lapses. With only two months to spare, a newly initiated cycle would not allow local and non-profit CoC partners sufficient time to prepare for the NOFO’s substantial changes. This would erode local capacity to effectively respond to homelessness and ultimately affect the wellbeing of our residents.”

November 13, 2025, article by Politico.

Additionally, in a November 13, 2025, article by Politico, in part it says, “ The Department of Housing and Urban Development released policy changes Thursday night that will significantly cut funding for a permanent housing program for people experiencing homelessness.

More than half of the 2026 funding for HUD’s Continuum of Care program, which partners with local organizations to connect people experiencing homelessness to housing and resources, will be cut for permanent housing assistance and moved to transitional housing assistance with some work or service requirements. The policy change was first reported by POLITICO.

The funding cuts could put 170,000 people at risk of experiencing homelessness, according to internal HUD documentation previously obtained by POLITICO.

The application for the next grant cycle, which is expected to open in the coming weeks, will close on Jan. 14, two weeks before Congress will be required to determine funding levels for HUD, including the CoC program, according to the notice of funding opportunity.

Project grants will have already expired before the award cycle closes and additional funding is granted. This means that some permanent housing will be left with no funding and tenants could be displaced during the coldest months of the year, said a HUD employee granted anonymity to discuss sensitive matters. The anticipated award day is May 1, which leaves projects without funding for much of the first half of 2026.

Approximately one-third of all current program awards expire between January and June 2026, meaning those projects will run out of funds before the next awards are granted, according to the National Alliance to End Homelessness.

There are concerns that the 10 weeks the notice of funding opportunity will be open for is barely enough time for projects to apply for funding with the policy changes, according to the HUD employee.

“It’s terrible policy and really irresponsible administration of the program,” said Ann Oliva, CEO of the National Alliance to End Homelessness who formerly worked for HUD for more than a decade. “Putting out a grant opportunity with a tight turnaround and massive changes, knowing that you can’t get awards out until at least mid year just is is deeply irresponsible. They are setting communities up for failure.”

Lynda Carson may be reached at newzland2 [at] gmail.com

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