On Friday, November 14, the U.S. Department of Housing and Urban Development (HUD) officially issued the FY2025 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO). This action by HUD makes dramatic changes to how the federal government funds homelessness assistance programs, including capping funding for permanent supportive housing and putting as many as 170,000 people who rely on CoC assistance for stable, affordable housing at risk of returning to homelessness.  

The CoC program, administered in partnership with local governments and nonprofit organizations, is the largest source of federal funding for homelessness assistance. CoC serves over 750,000 people experiencing homelessness each year, including older adults, people with disabilities, veterans, and families with children.  

These resources form the backbone of many communities’ coordinated efforts to end homelessness and keep families safely housed. In many communities, particularly in rural and southern areas of the country, CoC is the only source of funding for addressing homelessness and providing permanent housing options.  

Currently, approximately 87% of CoC funds are allocated to permanent housing, including permanent supportive housing and rapid rehousing, proven solutions to homelessness that pair housing with voluntary supportive services to help individuals find and maintain a safe, stable home. The NOFO limits how much CoC funding communities can spend on permanent housing to 30%. This will erode local capacity to effectively respond to homelessness and affect the wellbeing of our community members.    

We encourage United Ways to reach out to their Members of Congress in support of appropriations language that renews all existing CoC grants expiring in calendar year 2026 for one additional 12-month period.