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City manager warns HUD changes could strip millions from Cambridge homelessness programs
Summary
City manager Yon Wong told the Cambridge City Council that a Nov. 12 HUD notice could reduce guaranteed Continuum of Care carryover from roughly 90% to 30%, potentially cutting the city’s federal homelessness funding by an estimated $4.6 million and putting hundreds of households at risk.
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City manager Yon Wong warned the Cambridge City Council on Nov. 17 that federal changes to homelessness grant rules could sharply reduce funding for the city’s Continuum of Care programs, potentially forcing local officials to seek legal and budgetary responses.
Wong said HUD’s Nov. 12 notice reconfigures the Continuum of Care grant, moving a larger share of funds into competitive priorities and reducing the previously typical 90% guaranteed carryover to about 30%. “These cuts are much deeper than expected and being implemented much faster than expected,” Wong said. He told the council Cambridge currently receives about $6.4 million a year from Continuum of Care grants and estimated the city might retain only about 30%—a potential reduction of roughly $4.6 million.
Why it matters: Continuum of Care dollars fund permanent supportive housing and services that Cambridge officials say have produced a 96–97% retention rate for households exited from homelessness. Wong said the city’s Continuum program currently houses about 214 households and that emergency housing vouchers (a separate program funded through the Cambridge Housing Authority) support about 129 households and receive roughly $3.8 million a year. He warned that the emergency voucher funding is also “at risk” and that federal timing means communities must start grant work within 30 days even as rules shift.
Councilors pressed for detail. Councilor Nolan called the news “stunning” and urged aggressive local coordination; Councilor Siddiqui and Councilor Azim asked about partnering with other municipalities and nonprofits. Wong said the city is “still digesting” the notice, assessing new grant conditions (including proposed restrictions tied to diversity, equity and inclusion practices), and exploring both program‑level applications for new competitive pools and legal avenues to challenge aspects of the policy. “We are also looking at legal avenues,” he said, and noted the city has set aside mitigation funds but that those reserves would be far smaller than the totals potentially needed.
Local finances and next steps: Councilors asked whether Cambridge should increase the stabilization fund; Wong reminded the council the city had set aside $5 million for stabilization and had $3.75 million unappropriated at present. He said severe resource constraints mean any larger, ongoing commitments would likely have to be part of the FY27 budget conversation. Wong promised regular updates as the city continues to analyze grant language and coordinate with statewide partners.
Outlook: Officials said they expect more policy detail soon and will work with the Cambridge Housing Authority, service providers and neighboring cities to mitigate harm. Wong said some funding changes could take effect as early as late summer 2026 and that the council would be briefed again as staff develop recommendations.
