WASHINGTON, D.C. — Communities nationwide will soon be able to apply for federal homelessness funding under a revised program that places greater emphasis on services beyond permanent housing.
What This Means for You
- Local agencies can apply for federal homelessness funding by mid-2026
- New priorities include treatment, job training, and transitional housing
- Funding decisions are expected by December 2026
The Department of Housing and Urban Development announced that the 2026 Continuum of Care funding competition will open by June 1, with awards expected to be distributed by December 1.
The Continuum of Care program is a nationwide grant competition that funds local efforts to reduce homelessness by supporting housing and services for individuals and families.
Shift in Program Priorities
HUD officials said the upcoming funding cycle will place increased emphasis on a broader range of services, including transitional housing and programs that address underlying causes of homelessness.
Transitional housing provides temporary living arrangements combined with services to help individuals move toward permanent housing.
In addition to housing support, eligible uses of funding include mental health care, substance use treatment, job training, childcare, and street outreach.
Officials said the changes are intended to expand the types of interventions communities can use to address homelessness.
Expanded Partnerships
HUD is encouraging a wider range of organizations to participate in the program, including nonprofit groups, local governments, law enforcement agencies, and healthcare providers.
Officials said coordinated efforts among these groups are key to addressing both housing needs and public safety concerns.
Oversight and Compliance
Applicants must follow federal financial reporting rules and other legal requirements to receive funding.
HUD also emphasized that funding cannot be used for activities that violate federal law, including the operation of certain drug-use facilities.
Neutrality Check
The updated funding approach reflects the administration’s policy direction for addressing homelessness. Supporters argue the broader focus could improve outcomes by addressing root causes, while advocates of previous models have argued that prioritizing permanent housing can provide stability. No opposing statements were included in the provided material.
Next Steps
Eligible applicants must submit proposals through their local Continuum of Care organization.
HUD officials said the revised funding framework is intended to support more comprehensive and coordinated efforts to reduce homelessness nationwide.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.