Federal Court Blocks HUD Plans To Shift Funding From Supported Housing To Transitional Housing

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). The ruling effectively blocks implementation of proposed funding changes that would have shifted resources from permanent housing toward transitional housing and supportive services. Federal law permits HUD to provide incentives for certain permanent supportive housing and rapid rehousing activities. For other activities that HUD determines have been proven effective at reducing homelessness, the law requires that determination to be based on research and made after public notice and . . .