Federal Court Vacates HUD’s $4.04 Billion FY 2026 Continuum Of Care Funding Notice

A federal court on August 7, 2026, vacated the U.S. Department of Housing and Urban Development's (HUD) fiscal year (FY) 2026 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO), blocking implementation of proposed funding changes that would have shifted resources from permanent housing toward transitional housing and supportive services. The FY 2026 competition made approximately $4.04 billion available for an estimated 7,000 awards.

HUD issued the FY 2026 NOFO on June 1, 2026. The funding structure included a $1.3 billion set-aside for new projects using transitional housing and emphasizing enrollment in supportive services . . .