September 30, 2025, Washington, D.C. — The National Alliance to End Homelessness today condemned dangerous and irresponsible new funding criteria that the U.S. Department of Housing and Urban Development (HUD) intends to publish in the forthcoming FY2025 Continuum of Care (CoC) Program Competition Notice of Funding Opportunity (NOFO). The CoC Program Competition NOFO is the mechanism for communities to apply for the largest federal program to address homelessness. The news was first reported on September 29 by Politico, in an expose that was corroborated by multiple sources within HUD.
Alliance leaders stated that these sudden changes will destroy the very foundation of the nation’s response to homelessness.
“People all over this nation have overcome homelessness and stabilized in HUD’s permanent housing programs. Many are just beginning that process and getting a shot at a new life,” said Ann Oliva, CEO of the National Alliance to End Homelessness. “HUD’s new funding priorities slam the door on them, their providers, and their communities. Make no mistake: homelessness will only increase because of this reckless and irresponsible decision.”
The Alliance’s concerns center around three major issues:
Permanent Housing Slashed: This funding application will cap investments in permanent housing resources, so that no community can invest more than 30 percent of its CoC program funds in proven solutions such as Permanent Supportive Housing or Rapid Rehousing. The impact of this sudden shift will be massive, causing more than 170,000 of the most vulnerable Americans currently served in these programs to lose their housing and supportive services. This includes people with physical and behavioral disabilities, veterans, older adults, youth, families, and those in rural communities. It is also expected to force providers to suspend or contract services and lay off staff.
Outdated Programs Prioritized: This NOFO will instead incentivize communities to invest in transitional housing and treatment-first approaches. These strategies were deprioritized by the federal government decades ago because they were proven to be more costly and less effective at ending people’s homelessness.
Ongoing Funding Destabilized: The 30 percent cap on permanent housing will force communities to defund or significantly reduce funding for existing programs, regardless of their outcomes.
Alliance leaders also expressed frustration at the timing of the FY2025 CoC Program Competition NOFO, which HUD intends to reissue after Congress previously approved a two-year funding cycle for FY2024 and FY2025. The compressed schedule and dramatic changes involved in this year’s application will likely result in some programs running out of funds before FY2025 applications can be reviewed.
“This is an indefensible betrayal of HUD’s mission,” said Oliva. “Instead of helping communities end homelessness, HUD is actively fueling its growth with these decisions. As a former senior HUD staffer, I can honestly say that I don’t know what HUD is doing, and I don’t think they do either.”
About the National Alliance to End Homelessness
The National Alliance to End Homelessness is a nonprofit, nonpartisan organization committed to preventing and ending homelessness in the United States. As a leading voice on the issue of homelessness, the Alliance analyzes policy and develops pragmatic, cost-effective solutions; works collaboratively with the public, private, and nonprofit sectors to build state and local capacity; and provides data and research to policymakers and elected officials in order to inform policy debates and educate the public and opinion leaders nationwide.
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