HUD Retracts Homelessness Grant Guidance Amid Concerns of Funding Cuts
On December 8, 2025, the U.S. Department of Housing and Urban Development (HUD) announced the withdrawal of recent guidance concerning homeless services grants. This decision, detailed in a brief update on the Continuum of Care website, has left local officials and service providers anxious about potential reductions in housing support funding.
According to the update, HUD plans to revise the Notice of Funding Opportunity (NOFO) for the Continuum of Care (CoC) grant program. The withdrawal aims to allow modifications in light of new priorities, such as the Youth Homelessness Demonstration Program (YHDP) and new funding sources. HUD intends to reissue the modified NOFO well before the Fiscal Year 2025 funds need to be obligated.
Community Impacts and Concerns
In Reno, Dean Herman, a resident at the transitional living facility Hope Springs, shared his journey from facing citations for camping and open containers to seeking permanent housing. He attributes his progress to the specialty court designed to divert unhoused individuals from jail to supportive services.
“That’s what the people need. They need a roof over their head. They need, you know, a place to lay down,” Herman stated. “And then you can change your mindset.”…