The Trump administration is expected to dramatically cut funding for a permanent housing program.
More than half of the 2026 funding for the Department of Housing and Urban Development’s homelessness program designated for permanent housing projects will be cut and moved to transitional housing assistance with some work or service requirements. The program partners with communities to provide housing and services to sheltered and unsheltered people with the goal of moving them into permanent housing. It often benefits families with children, and those who have experienced homelessness in the past in combination with being chronically ill or having a disability.
The available funding for permanent housing for calendar year 2026 is currently at $3.3 billion, but would be cut to less than half of that at around $1.1 billion once the policy change is implemented, according to the internal HUD data. Additionally, President Donald Trump’s budget for fiscal 2026 proposed cutting funding to the entire CoC program.
Currently, 87 percent of all CoC program funds ending in 2026 are slated to support permanent housing in some capacity. Under the policy change, only 30 percent of the funds will be allowed to be used for that purpose.
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