HUD Withdraws Controversial Homelessness Funding Opportunity

The Department of Housing and Urban Development (HUD) on December 8, 2025 withdrew its controversial Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) for homelessness interventions that was announced November 13.

In its funding opportunity announcement, HUD had shifted the majority of funding previously allotted to Permanent Supportive Housing (PSH) to short-term transitional housing, instead. LeadingAge and others had advocated for the agency to change course, and two lawsuits were filed.

In response to one of the lawsuits, brought by non-profit organizations and municipalities, HUD notified the court that it had withdrawn the NOFO to review it for the plaintiff's concerns.

LeadingAge is celebrating the withdrawal as a preliminary step in the right direction, and we urge HUD to renew the existing funding for PSH as soon as possible to avoid funding lapses for homelessness programs.