There’s so much happening at this moment, but it’s difficult to write this update without first acknowledging the events that unfolded in Minneapolis over the weekend with the murder of yet another person at the hands of federal agents.
I’m thinking of the entire community in Minneapolis left grappling with unimaginable tragedy, and of all the marginalized people who feel under attack in this moment. Like many of us in the homeless services field, Alex Pretti dedicated his life to serving the most vulnerable in his community in his role as an ICU nurse at the VA. And that makes this entire situation all the more heartbreaking.
Please look after yourselves, look after one another, and look after your neighbors.
Federal Budget Updates
In the fallout of this tragic moment, there is tension over the future of the federal budget, with a battle over the passage of the U.S. Department of Homeland Security’s (DHS) annual resources in the Senate, resulting in continued uncertainty.
Congress had been making bipartisan progress on the FY2026 appropriations process ahead of the impending January 30 deadline for the current short-term continuing resolution.
This progress may be stalled, but here’s where things stand now:
- Overall appropriations: On January 20, Congressional appropriators released bill text of a third “minibus” package (i.e., a smaller funding bill). This included funding for several federal Departments, including HUD.
- Transportation, Housing and Urban Development (T-HUD) Funding: The FY2026 spending bill for THUD programs provides $77.3 billion for HUD programs in FY26, which is more than a $7.2 billion increase over the previous fiscal year.
- The bill provides $4.4 billion for HUD’s Homeless Assistance Grants programs, including the Continuum of Care (CoC) Program and Emergency Solutions Grants (ESG) program.
- The bill also includes useful provisions related to the award of both FY2025 and FY2026 CoC Program funding.
- Bill passage and voting: Last week, the House passed the minibus package with a bipartisan vote of 341-88. This package was combined with the bill for DHS funding before moving to the Senate for a vote. Last week, the House passed the minibus package with a bipartisan vote of 341-88. This package was combined with the bill for DHS funding before moving to the Senate for a vote.
The recent events in Minnesota have sparked debate over funding for DHS, making it unlikely that Senate Democrats and Republicans will be able to come to agreement on DHS funding prior to January 30 to avoid another government shutdown. If the Senate agrees to separate the DHS spending from the rest of the minibus spending package and can pass it, the package will need to go back to the House for another vote, which likely could not occur until next week. If the Senate is unable to reach agreement to separate out DHS funding, the final spending bill is in jeopardy indefinitely.
As always, the Alliance will keep you posted on any upcoming developments, and where advocates can step in.
Planning for the Point-in-Time Count
As we close out January, I know that many of you are either preparing for your community’s annual Point-in-Time Count or have recently finished it.
PIT Counts are an opportunity to educate those around you on the realities of homelessness and how this data is used. Making sure we know who in our community experiences homelessness, how they got there, and what their needs are is vital to ensure that we can support people in returning to housing.
Conducting this count requires months of planning, coordination, and care by staff and volunteers. It comes at a time when our field has been navigating deep uncertainty, and a large swath of the country is recovering from the impact of a severe winter storm. Continuums of Care are carrying a lot right now and working hard to bring people inside; I know just how much work this takes, and I want to thank every one of you for your efforts.
In a moment when we are all asking ourselves what else we could or should be doing, it means so much to all of us at the Alliance that you are going the extra mile to complete this important job on behalf of the people you serve – in the dead of night, in the depth of the winter, for no pay.
This is who you are, and it makes us all so proud to work alongside you.
Please take care of one another.
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