Federal Updates

Hi all,

Our colleagues at Manatt Health Strategies are providing weekly updates on federal developments affecting the CoC Program, which we are sharing with our CT BOS email lists. Please see this week’s full update below. Key points most relevant to CT BOS grantees include:

• FY 2026 CoC Competition remains on hold.
  • On August 7, the federal district court in Rhode Island vacated HUD’s FY 2026 CoC NOFO.
  • As a result, the NOFO and August 26 application deadline are not currently in effect, and HUD cannot accept FY 2026 CoC applications.
  • HUD appealed the ruling to the First Circuit.
  • The latest development is that on 8/27, the First Circuit asked HUD and the plaintiffs for more information before ruling on HUD’s emergency request to reinstate the NOFO while the appeal proceeds. The court is specifically examining whether HUD had statutory authority for the $1.3 billion set-aside for TH and SSO projects. A ruling on the stay is expected soon afterward a 9/4 filing deadline.
  • If the stay is denied, HUD could seek Supreme Court review, issue a revised NOFO without the set-aside, or undertake notice-and-comment before reissuing it.
• King County v. Turner – federal grant conditions.
  • On 8/25, the Ninth Circuit largely upheld an injunction blocking federal agencies, including HUD, from imposing certain policy-based conditions on federal grants.
  • The case involves conditions related to immigration, DEI, gender identity issues, and abortion.
  • The court agreed that federal agencies generally cannot use grant funding to impose requirements unrelated to the purposes Congress established for the funded programs or otherwise beyond their legal authority.
  • What this means for CT: Because Connecticut is a plaintiff covered by the injunction, HUD currently cannot enforce the challenged CoC conditions against CT, including requirements to certify compliance with the challenged Administration policies; prohibit CoC funds from “promoting gender ideology” or “subsidizing illegal immigration”; or verify immigration status through SAVE. HUD may require certification of compliance with applicable federal nondiscrimination requirements for CoC-funded activities, but cannot extend that certification to programming outside the CoC grant.

We will continue to provide weekly updates and additional direction to CT BOS grantees as soon as there is a court ruling or HUD guidance affecting next steps on the CoC competition. As always, please reach out with any questions. We hope you all have a terrific week!

Sincerely,

CT BOS Team