Staff Reports
Housing and Urban Development Secretary Scott Turner went on the radio this week to defend a sharp rewrite of the federal homeless funding rules. The new FY 2026 Continuum of Care (CoC) NOFO aims to stop automatic renewals for underperforming grantees and steer dollars toward treatment, job help, and transitional housing instead of the low‑barrier “Housing First” approach that has dominated the last decade. It’s a real policy shakeup — and it will sting the nonprofit industrial complex that grew used to steady federal checks.
What the FY 2026 CoC NOFO actually does
The Department of Housing and Urban Development released a FY 2026 Continuum of Care NOFO worth about $4.04 billion, with roughly $1.3 billion set aside for new projects. HUD’s materials and Secretary Turner’s interview make plain the goal: make funding competitive, tie awards to performance, and prioritize transitional housing and supportive‑service projects like addiction treatment, street outreach, and job training. The NOFO explicitly pushes away from automatic renewals for projects that aren’t delivering results.
Why Secretary Turner says this is needed
Accountability over complacency
Turner calls the old model a “homeless industrial complex” that too often “warehoused” people without giving them tools to recover. His pitch is simple: taxpayers should not be forced to underwrite failing programs forever. If a shelter or provider keeps getting money despite poor outcomes, HUD will now demand better results or let others compete for the dollars. That is common‑sense accountability, not cruelty — unless you prefer the status quo of endless spending with little progress.
Critics, courts, and the fight ahead
Predictably, advocacy groups and some cities are furious. National homelessness organizations argue that “Housing First” is evidence‑based and that shrinking support for permanent supportive housing will harm people with serious disabilities. There’s also legal history here: courts have blocked earlier versions of HUD’s changes after lawsuits found procedural problems. Expect more litigation and loud press releases. But the core policy debate is fair: should federal funds renew automatically for poor performers, or should they be won by the programs that prove they work?
Why taxpayers and local leaders should pay attention
This NOFO will change how local Continuums of Care make decisions and who gets paid to run homeless services. Communities need to know the scoring rules, deadlines, and performance measures so they can defend good programs and replace bad ones. HUD’s move could improve outcomes if applied wisely — or it could create chaos if implemented without clear guidance. Either way, watchdogs on all sides should keep their eyes peeled. The public deserves both compassion for people in need and accountability for the organizations spending taxpayer dollars.
