CoC Funding Update

Below is a brief update on CoC Program funding. We appreciate your patience and your partnership as we work together through the challenges posed by this year’s CoC program competition process. We are here to support you. Please continue to submit any questions you might have to ctboscoc@gmail.com.

Sincerely,

CT BOS Team

FY2026 Budget Updates

The Continuing Resolution that had been funding the federal government expired on January30th resulting in a partial government shutdown. On 2/3/26, the President signed the fiscal year (FY) 2026 appropriations for Transportation, Housing and Urban Development (THUD) programs. The appropriations law includes this language:

$4.417B for HUD’s Homeless Assistance Grants (HAG), including the CoC program. As apoint of comparison, the FY25 budget allocated $4.051B for HAG. This funding will support the FY2026 CoC Competition and includes a $52M set-aside for DV projects.The funding available for the CoC Program in FY26 is more than a $300 million increase from the FY2025 Full-Year Continuing Resolution. Because of the flat funding between FY2024 and FY2025, however, there will likely be a gap between the amount available and the amount needed to cover eligible renewals.
A provision requiring HUD to set Tier 1 funding in the FY2026 CoC Competition at not less than 60% of Annual Renewal Demand. This means that at a minimum 60% of the funding CoCs need to renew all existing projects will be protected.
A provision requiring HUD to publish the FY2026 CoC Notice of Funding Opportunity (NOFO) by June and to make awards by December 1, 2026.

However, as you know, HUD has not yet conducted the FY2025 CoC Competition. The FY2026 appropriations law also includes a provision that renews CoC grants expiring in Calendar Year 2025 on a rolling basis as described below. These are the grants that would typically be awarded through the FY2025 CoC Competition:

HUD must immediately non-competitively renew for 12 months grants that expire in quarter 1 of Calendar Year 2026 (i.e,. January to March)
If HUD does not conclude the FY2025 CoC Competition and announce awards prior to April 1, 2026, HUD must non-competitively renew for 12 months grants that expire in quarter 2 of Calendar Year 2026 (i.e., April to June)
If HUD does not conclude the FY2025 CoC Competition and announce awards prior to July 1, 2026, HUD must non-competitively renew for 12 months grants that expire in Quarters 3 and 4 of Calendar Year 2026 (i.e., July to December)

FY2025 CoC Competition

Two lawsuits about HUD’s decision to rescind the two-year FY 2024-25 Continuum of Care (CoC) NOFO and replace it with a FY 2025 NOFO remain in progress. A decision from the court is anticipated in mid to late February. HUD will then have 60 days to file an appeal. HUD has stated their intent to proceed with the FY25 NOFO issued on 12/19/25 to the extent doing so is allowed by the court. Since the renewal timetable described above will change the amount of funding available for competitive award, and the deadlines contained in the 12/19/25 NOFO will be moot, HUD will need to release an updated NOFO if allowed to proceed.

The CT BOS Steering Committee will be discussing these new developments and next steps at their 2/20/26 meeting. Our team will continue to keep you informed.Thank you for everything you are doing to keep our neighbors safe and housed in these difficult times. Please do not hesitate to reach out with questions