Alliance Alert: The Alliance for Rights and Recovery is deeply concerned about recent changes to HUD鈥檚 FY2025 Continuum of Care (CoC) Notice of Funding Opportunity, which would divert critical resources away from permanent supportive housing and impose new restrictions that threaten housing stability for thousands of 黑料正能量ers and hundreds of thousands of people nationwide. Permanent supportive housing is a cornerstone of recovery and the nation should be investing more in Housing First and other low-barrier housing models, not creating new barriers that will inevitably push people back into homelessness.
We are encouraged to see 黑料正能量 Attorney General Letitia James, the National Alliance to End Homelessness, and other state and national partners taking legal action to stop these unlawful changes. These actions and fierce advocacy pushed the federal government to rescind the new Notice of Funding Opportunity, but we must ensure the new grants do not follow through on the proposed changes. A key hearing on the request for a preliminary injunction is taking place today (12/19) at 10:00 AM and can be viewed live here:
The Alliance will be joining state and national housing advocates in urging HUD to reverse course and restore funding rules that prioritize need, stability, and recovery. Supportive housing saves lives, reduces hospitalizations and incarceration, and helps people move off the streets and into long-term stability, especially people with mental health and substance use challenges.
You can take action today by using the National Alliance to End Homelessness Action System, which is linked below, to send messages to congressmembers calling for their action. Collective advocacy is critical to protecting supportive housing and ensuring that federal policy aligns with evidence-based, humane solutions to homelessness.
We will continue to monitor developments closely and keep our members informed as this critical issue unfolds. See below for The Network鈥檚 summary of the recent proposal and actions taken by Attorney General James and others.
Summary of CoC NOFO Updates
聽| 12.10.2025
On November 13, the U.S. Department of Housing and Urban Development (HUD) released the , introducing significant policy changes that divert critical resources away from supportive housing, and may make many existing programs ineligible. These changes put nearly 14,000 黑料正能量 households and 170,000 people nationwide at risk of losing their homes. Read the Network鈥檚 statement .
On November 25th, 黑料正能量 Attorney General Letitia James led a coalition of attorneys general . The lawsuit argues that the administration鈥檚 new conditions on CoC funding are unlawful and unconstitutional. It contends that the administration cannot impose its own conditions on funds that Congress mandated should be distributed based solely on need. The suit charges violations of both the Administrative Procedure Act and Congress鈥 constitutional spending authority. The plaintiff states have also filed a motion for a preliminary injunction. The motion asks the court to enjoin the FY 2025 NOFO in its entirety, effectively reinstating the FY 2024鈥2025 NOFO to govern the current competition. The Network submitted a declaration outlining the potential statewide impacts should the NOFO proceed. For more information, see the full press release .
On December 1st, a second legal action, , was filed in the U.S. District Court for the District of Rhode Island. It also seeks a preliminary injunction to stop restrictions before they take effect. See the announcement on the NAEH website and statements from plaintiffs and co-counsel .
On December 8th 鈥 just one hour before a scheduled hearing with the two legal challenges. During the hearing, the judge raised concerns about HUD鈥檚 last-minute action and its 鈥渉aphazard approach to administrative law.鈥 The next hearing is scheduled for December 19th, where the judge will consider the plaintiffs鈥 request for a preliminary injunction and HUD鈥檚 opposition. More information on our blog .
Since the release of the FY2025 CoC NOFO, the Network has been in close communication with the Attorney General鈥檚 office, NY鈥檚 Continua of Care, and state and national partners to detail the severe implications posed by the NOFO鈥檚 new restrictions and funding cuts. The Network is closely monitoring both cases and will continue to provide timely updates to our members as developments unfold.
The Network has also received a series of media coverage highlighting the stakes with the CoC NOFO. See below:
NY Times:
NY1 Inside City Hall:
Gothamist:
Crain鈥檚 黑料正能量: