HUD Shifts $4 Billion Homelessness Program From ‘Housing First’ To Treatment

The U.S. Department of Housing and Urban Development (HUD) has released its Fiscal Year 2026 Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO), signaling a formal policy shift away from "Housing First" and permanent supportive housing (PSH), and toward transitional housing paired with a focus on treatment and recovery from mental illness and substance use disorders, and a focus on self-sufficiency as the central goals of federal homelessness funding. To support the transition away from the Housing First model and PSH, the FY 2026 NOFO sets aside $1.3 billion specifically for new Transitional Housing and . . .