New bipartisan federal investments will preserve housing, prevent returns to homelessness and strengthen local efforts to reduce homelessness
Community Solutions’ national, bi-partisan network rallied key support — ‘… a powerful reminder that homelessness in America is shaped by the decisions we make’
WASHINGTON, D.C., (Feb. 5, 2026) — This week, President Donald Trump signed into law a major bipartisan funding bill providing more than $77 billion for the U.S. Department of Housing and Urban Development (HUD), an increase of approximately 10 percent over last year’s budget.
Community Solutions welcomes the bill’s significant investments in proven housing and homelessness solutions, including critical protections for local Continuum of Care (CoC) grants and expanded resources to maintain affordable homes and prevent returns to homelessness.
“Communities raised the alarm early, shared local evidence, and educated Congress on the impact of tens of thousands of individuals returning to homelessness,” said Rosanne Haggerty, President and Founder of Community Solutions. “This funding bill is a powerful reminder that homelessness in America is shaped by the decisions we make. Preserving affordable homes and preventing homelessness must remain a national priority.”
Community Solutions’ advocacy and research helped shape the moment. Over the past several months, Community Solutions worked with community leaders, landlords, service providers, and national partners to document the risks posed by HUD’s initial 2025 NOFO.
Community Solutions’ analyses and research showed:
- More than $100 million in HUD CoC grant funding was set to expire in January 2026 alone, creating an immediate and escalating risk of housing loss absent Congressional action.
- HUD’s initial FY 2025 NOFO threatened rental support for more than 170,000 people who had overcome homelessness.
- HUD’s initial FY 2025 NOFO disproportionately impacted older adults living in cost-effective Supportive Housing, shifting significant costs to hospitals, nursing homes, and state Medicaid programs.
- HUD’s initial FY 2025 NOFO put more than $1.8 billion in rental payments to local mom and pop landlords at risk.
“The data were clear that funding gaps would trigger affordable housing losses, and Congress acted to prevent that outcome. This legislation reflects something very hopeful: policymakers responded to evidence of a looming crisis before the damage was done,” said Adam Ruege, Principal for Policy & Evaluation at Community Solutions. “This important outcome reflects a major, bipartisan effort of communities and partners across the country committed to continued progress in reducing homelessness and preserving affordable housing.”
This minibus package provides major federal investments in proven homelessness solutions. The enacted package appropriates $4.4 billion for Homeless Assistance Grants, including:
- $4.01 billion for the Continuum of Care Program and Rural Housing Stability
- $290 million for Emergency Solutions Grants (ESG)
- $107 million for Youth Homelessness Demonstration Projects
- At least $52 million for rapid rehousing and coordinated entry efforts supporting survivors of domestic violence
The bill provides more than $4.4 billion for Homeless Assistance Grants, including Continuum of Care (CoC) and Emergency Solutions Grants, a $336 million increase over the prior year.
Critically, the bill includes language requiring HUD to automatically renew CoC grants expiring in the first quarter of calendar year 2026 for 12 months, with additional renewals required across the year if a new Notice of Funding Opportunity (NOFO) has not yet resulted in awards.
This safeguard aligns directly with Community Solutions’ recent warnings that expiring CoC grants posed an imminent funding cliff that could destabilize homelessness response systems nationwide. In January 2026 alone, more than $100 million in CoC funding was set to expire, threatening housing stability for families, veterans, seniors, and survivors of violence.
“Even short disruptions can destabilize entire systems and take years to rebuild,” Haggerty said in January. “These grants fund critical services and housing programs that keep people off the streets and help families remain safely housed.”
The bill provides $34.9 billion to renew existing tenant-based rental assistance contracts, including Housing Choice Vouchers, intended to be sufficient to cover renewals.
Funding for Tenant Protection Vouchers (TPVs) rises to approximately $601 million, a $264 million increase over last year. Notably, the bill allows Public Housing Agencies to use TPVs to transition families from expiring Emergency Housing Vouchers (EHVs) into ongoing assistance, a major development for preventing avoidable housing loss.
Looking ahead, Community Solutions will continue working with HUD, Congress, and local communities to ensure the new protections are implemented effectively and that future CoC funding processes remain outcomes-focused, stable, and grounded in preventing homelessness, rather than creating disruptive churn.
“We support thoughtful reform that achieves effective outcomes: keeps people in their homes, prevents increased homelessness, and is realistic in light of today’s housing affordability crisis,” Haggerty said.
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FOR IMMEDIATE RELEASE
Feb. 5, 2026
Media Contact:
Brian Jones
bjones@community.solutions
About Community Solutions
Community Solutions is a nonprofit working to make homelessness rare and brief. It leads Built for Zero, a network of more than 160 US communities using a field-tested, outcomes-focused approach to reducing and preventing homelessness.
Learn more at www.community.solutions or follow us at @CmtySolutions.
