February 4, 2026
There is positive news at the federal level for communities responding to homelessness.
On February 3, 2026, the President signed H.R. 7148, the Consolidated Appropriations Act of 2026, into law, funding the vast majority of the federal government through September 30, 2026, and ending a brief partial government shutdown earlier in the week. The legislation includes a $7.2 billion increase for the U.S. Department of Housing and Urban Development (HUD) and explicit language requiring HUD to continue funding Continuum of Care (CoC) grants, the largest federal funding source for homelessness services nationwide.
Passed as part of an agreement to restore funding after the shutdown, the appropriations package provides $77.3 billion for HUD in Fiscal Year 2026. This is a significant win, particularly given that earlier proposals would have resulted in deep cuts to critical housing and homelessness programs. From a housing perspective, this outcome reinforces what we know to be true: advocacy works.
The FY26 spending bill includes several important investments:
These investments help preserve housing-first strategies that stabilize individuals and families and reduce homelessness over the long term.
With ongoing litigation and uncertainty surrounding HUD’s attempted changes to the CoC program, Congress included clear protections for communities and providers in the final appropriations language. The bill:
These congressional actions build on an important legal development in late 2025.
In November 2025, HUD issued a new CoC NOFO proposing sweeping changes to how more than $3 billion in homelessness assistance would be distributed, including restrictions on permanent housing investments and new compliance requirements.
A coalition of states, local governments, nonprofit organizations, and housing advocates challenged the policy, arguing it conflicted with federal law and congressional intent. On December 19, 2025, a federal judge issued a preliminary injunction blocking HUD from implementing the new NOFO and ordered the agency to revert to prior CoC guidance while litigation proceeds.
As a result, HUD reinstated the FY 2024–2025 CoC NOFO, preserving existing eligibility and renewal criteria for the time being.
For communities like ours, where homelessness extends beyond Columbus and Franklin County and affects neighboring counties, continuity and predictability in federal funding are essential. Stable CoC funding allows local systems to prioritize housing, reduce time spent homeless, and ensure public investments lead to measurable outcomes for families, individuals, veterans, seniors, and people with disabilities.
While further policy changes may still emerge, this legislation creates a more rational process and buys critical time for providers and communities to prepare and advocate.
We also appreciate the leadership of our national and statewide coalition partners, the National Alliance to End Homelessness, the National Low Income Housing Coalition, and the Coalition on Homelessness and Housing in Ohio (COHHIO) for their coordination, analysis, and advocacy around Continuum of Care funding and the FY26 appropriations process.
Community Shelter Board will continue to closely monitor federal policy developments, court proceedings, and HUD guidance. We remain committed to advocating for consistent, predictable funding for solutions that work and will share updates as this situation evolves.