December 19, 2025
Updated December 19, 2025
After the longest federal government shutdown in U.S. history, the federal government has finally reopened. While this is an important step toward stability, things are far from being “back to normal.”
The shutdown created deep uncertainty for communities that depend on federal housing and homelessness programs.
On December 19, 2025, a federal judge issued a preliminary injunction blocking the U.S. Department of Housing and Urban Development’s (HUD) proposed overhaul of the Continuum of Care (CoC) program. The court’s order requires HUD to proceed with 2025 CoC funding under the existing rules, protecting critical permanent housing programs for the near term.
The judge found that HUD’s attempt to cap funding for proven permanent housing solutions likely violates the McKinney-Vento Homeless Assistance Act and congressional intent, which prioritizes stable housing. The court also criticized HUD for attempting to bypass formal rulemaking, describing the agency’s actions as an apparent effort to evade judicial oversight.
The lawsuit was filed by a coalition of 20 states, local governments, and nonprofit organizations challenging the changes as unlawful and harmful to communities and people experiencing homelessness.
For more details on the ruling and its implications, read the full press release from Democracy Forward.
Last month, the U.S. Department of Housing and Urban Development (HUD) introduced the FY2025 Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO), which is the primary federal source of funding for homelessness response systems nationwide. The NOFO would have had additional and immediate risks for Ohio and Franklin County.
As of December 8, 2025, HUD has officially rescinded the FY25 CoC NOFO. Currently, there is no additional information about the next steps, revised timelines, or potential implications for local systems.
HUD’s formal statement is as follows:
“Today, the Department withdrew a Notice of Funding Opportunity (NOFO) with respect to the Continuum of Care (CoC) grant program. This withdrawal will allow the Department to make appropriate revisions to the NOFO, and the Department intends to do so… The Department still intends to exercise this discretion and make changes to the previously issued CoC NOFO to account for new priorities. HUD anticipates reissuing a modified NOFO well in advance of the deadline for obligation of available Fiscal Year 2025 funds.”
The City of Columbus and Franklin County rely heavily on CoC funds to sustain more than 4,000 units of permanent housing, including:
These programs stabilize seniors, people with disabilities, families, youth, veterans, and survivors of domestic violence.
Any interruption or delay in federal guidance could:
CSB is in close communication with HUD, statewide coalitions, and local government partners. We will share updates immediately as new information becomes available. Our priority is maintaining system stability and ensuring continuity of services for residents who depend on them.