Congress Delivers $4.4B for Homeless Assistance in FY2026 HUD Bill
February 28, 2026 · 2 min read
David Almeida
The Consolidated Appropriations Act of 2026, signed into law on February 3, delivers $77.3 billion to the Department of Housing and Urban Development — a $7.2 billion increase over FY2025. Buried in the headline number is a targeted $366 million boost for Homeless Assistance Grants, bringing total homelessness funding to $4.4 billion.
For housing nonprofits and Continuums of Care navigating an uncertain federal landscape, the bill provides both money and unusual procedural protections.
Where the Money Goes
The $4.4 billion breaks down into three streams. The Continuum of Care program receives $4.01 billion, including $43 million for cost-of-living adjustments and $52 million earmarked for new rapid rehousing projects and supportive services for survivors of domestic violence. Emergency Solutions Grants get $290 million. Youth Homeless Demonstration Programs receive $107 million.
Beyond homelessness, the bill allocates $38.4 billion for Tenant-Based Rental Assistance (up from $36 billion in FY2025) and $18.5 billion for Project-Based Rental Assistance (a $2.05 billion increase). The bill also reinstates $3.6 billion in congressionally directed spending — earmarks that were zeroed out in FY2025.
Protections Against Administrative Delay
The legislation includes language that housing advocates fought hard to secure. HUD must renew all CoC grants expiring in Q1 2026 for a full 12 months. If the agency fails to issue a new Notice of Funding Opportunity, the bill creates a timeline for renewing grants expiring later in the fiscal year. Most critically, HUD must issue its FY2026 CoC NOFO by June 1, 2026, with funds delivered by December 1.
These deadlines matter because the previous administration's proposed budget would have slashed HUD rental and homelessness programs. Congress rejected those cuts entirely.
What to Do Now
Homelessness service providers and housing nonprofits should begin preparing CoC competition applications immediately. The June 1 NOFO deadline means applications will likely be due by late summer. Organizations new to federal housing grants can explore current opportunities and eligibility requirements through tools like Granted, which tracks federal funding across agencies.
In-depth analysis of the full FY2026 HUD funding package is available on the Granted blog.