HUD Locks In $4.4 Billion for Homelessness Grants With New CoC Protections
March 26, 2026 · 2 min read
David Almeida
The FY2026 Consolidated Appropriations Act, signed February 3, delivers $4.42 billion for HUD Homeless Assistance Grants — a $336 million increase that includes unprecedented Congressional protections for the Continuum of Care program, the largest federal funding source for homelessness services nationwide.
The total HUD budget reached $77.3 billion, a $7.2 billion increase from FY2025. For organizations fighting homelessness, the specific protections embedded in the legislation may matter more than the topline numbers.
Congressional Guardrails on CoC Funding
The bill includes explicit language requiring HUD to renew Continuum of Care grants expiring in the first quarter of 2026 for 12 months — a direct response to concerns that the administration might delay or restructure the competitive grant process. Congress further mandated that HUD issue its FY2026 CoC Notice of Funding Opportunity no later than June 1, 2026, and award funding to recipients by December 1, 2026.
The CoC program alone receives $4.01 billion, a $466 million increase that represents the largest single-year boost in the program's history. The Emergency Solutions Grants program receives $290 million.
Tenant Protection and Housing Vouchers
Beyond homelessness, the bill allocates $34.9 billion for Tenant-Based Rental Assistance contract renewals, sufficient to maintain all existing Housing Choice Voucher contracts. Tenant Protection Vouchers receive $601 million — a $264 million increase — with specific authorization for public housing agencies to use these vouchers to transition families from the Emergency Housing Voucher program.
The Indian Housing Block Grant maintains its $1.1 billion level, though the competitive component drops $25 million to $125 million.
Preparing for the June NOFO
Homelessness service providers, housing authorities, and CoC lead agencies should begin assembling applications now for the expected June 1 NOFO. Key preparation steps include updating Housing Inventory Counts, documenting point-in-time survey participation, and strengthening outcome data on housing placement and retention rates.
The Eviction Protection Grant Program sees a significant reduction to $7.5 million from $20 million, meaning legal aid organizations will face tighter competition for those funds.
Organizations tracking HUD grant timelines and application strategies can find updated resources on grantedai.com.