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Administration announces $3.9 billion CoC NOFO, says it will move away from Housing First
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Summary
An unidentified speaker announced a $3.9 billion competitive Notice of Funding Opportunity for HUD's Continuum of Care program and said the administration is shifting away from the Housing First model, calling it a failed policy and promising new accountability and competition including faith-based applicants.
An unidentified speaker announced $3,900,000,000 in competitive grant funding for the U.S. Department of Housing and Urban Development's Continuum of Care (CoC) program and said the administration will move away from the Housing First approach.
"I'm happy to announce $3,900,000,000 in competitive grant funding through our latest COC competition NOFO or notice of funding opportunity," Speaker 1 said, adding that the NOFO "enacts the most significant policy reforms in the COC's history." The speaker framed the shift as a response to what they described as rising homelessness despite more than $12,000,000,000 in CoC spending under the prior administration.
The speaker sharply criticized Housing First, saying the policy "asserts that solving homelessness requires permanent housing with no strings attached and no real accountability" and that it "ignores the root causes of homelessness like mental illness and drug addiction." According to the speaker, the new NOFO will emphasize transitional housing, self-sufficiency and accountability, and will "open up competition to support real solutions, including from faith based organizations." The speaker also said the changes will curb automatic renewals that they said allowed about 90% of projects to auto-renew over the past four years.
The speaker tied the announced reforms to what they described as "president Trump's executive order, ending crime and disorder on America's streets," and said HUD's goal was to "support safe communities and pathways for self sufficiency, dignity, and opportunity for all Americans." The NOFO and the administration's policy claims were described in the remarks but were not accompanied by statutory citations, implementation timelines, or third-party verification of the program performance figures cited.
The announcement framed the NOFO as a policy reset rather than as a legislative or regulatory change requiring a vote. The speaker did not specify implementation dates, application deadlines, or the text of the NOFO in the remarks provided.
