WASHINGTON (WDNews) — According to the U.S. Department of Housing and Urban Development, the agency has announced a new Notice of Funding Opportunity (NOFO) making $4.04 billion available through the Continuum of Care (CoC) homelessness assistance program.
HUD said the funding is intended to better serve vulnerable populations while shifting the program’s focus toward recovery, self-sufficiency, accountability and measurable outcomes.
“The ‘housing first’ experiment failed Americans by warehousing the vulnerable without results. This ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels. Housing alone will not solve a crisis driven by addiction and mental illness. Under President Trump’s leadership, HUD is making necessary reforms to put recovery first,” said Secretary Scott Turner.
According to HUD, the Fiscal Year 2026 CoC funding opportunity includes a record level of funding and places greater emphasis on addressing the root causes of homelessness.
HUD said the program will support organizations that facilitate treatment and recovery while prohibiting funding for the widespread use of illicit drugs and distribution of paraphernalia. The agency stated that housing assistance will be paired with wraparound services designed to advance recovery and self-sufficiency.
The department also announced a $1.3 billion investment in new projects, with priority given to Transitional Housing and Supportive Service projects.
According to HUD, the funding opportunity introduces a more competitive process aimed at rewarding successful programs and improving outcomes. The agency said recipients will be required to prioritize projects that demonstrate results rather than automatically renewing funding for underperforming providers.
HUD also said the new funding model ties assistance to performance measures in an effort to reduce waste, fraud and abuse.
“To better steward American tax dollars, this NOFO ties funding to performance. This ends a lack of program accountability that has led to waste, fraud, and abuse instead of providing assistance to homeless individuals,” HUD stated.
The department said it is encouraging new applicants to participate in the program and is making resources available to communities nationwide seeking to address homelessness through treatment, recovery and housing assistance programs.
