HUD Moving Forward on Bold Homelessness Reform

Washington, DC - Today, HUD is announcing that homelessness-related service providers across the nation can expect the 2026 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) to be published by June 1, 2026. Further, applicants can expect awards to be made by December 1, 2026. The CoC Program is a national competition designed to promote community-wide efforts to reduce homelessness and optimize self-sufficiency.

As the number of people living on our streets remains at crisis levels, HUD is committed to reforming its homelessness programs. The status quo of “housing first” and “harm reduction” has failed at great cost to those suffering on our streets and to working American taxpayers.

HUD intends to rebalance the CoC program to focus on a diversity of solutions and treating the underlying causes of homelessness. HUD is thus increasing its investment in Transitional Housing, supportive services, and Supportive Service Only (SSO) projects such as street outreach, childcare, outpatient addiction treatment, and job training.

Examples of eligible uses of CoC funding include, but are not limited to:

Transitional Housing, Rapid Rehousing, and Permanent Supportive Housing
And the provision of services on their own or within housing, including, but not limited to:
- Case management,
- Substance Use Disorder treatment,
- Mental health treatment,
- Street outreach,
- Employment assistance and job training,
- Childcare, and
- Outpatient healthcare

To support comprehensive community-wide efforts to reduce homelessness, HUD encourages participation and partnership from a wide range of providers, including faith-based organizations, law enforcement, apprenticeship programs, substance use disorder treatment providers, specialty courts, mental illness treatment providers, service providers within emergency shelter, and more.

HUD acknowledges the critical role of law enforcement and other first responders in partnering to protect all members of the public, including those on our streets. HUD encourages communities to address the unsafe realities of encampments and public illicit drug use in a way that protects public safety and compassionately intervenes and helps individuals in crisis.

Eligible applicants are:

Nonprofit organizations,
States,
Local governments, and
Instrumentalities of State or local governments

HUD is committed to protecting taxpayer dollars against waste, fraud, and abuse. HUD reminds potential applicants that they must comply with all Federal law including financial reporting requirements and the prohibition on operating so-called “safe consumption sites” for drugs in violation of 21 U.S.C § 856.

Finally, HUD reminds potential applicants that they must apply for funding through the Collaborative Applicant of the CoC in their geographic area. The Solo Applicant appeal process is available to applicants who attempted to participate, that believe they were denied the right to participate in a reasonable manner.

Read Secretary Scott Turner's recent statement on best practices for addiction treatment within homelessness.