The Department of Housing and Urban Development is making $4.04 billion available through the fiscal year 2026 Continuum of Care program with revisions that prioritize funding for services focused on treatment and recovery over the historical “housing first” approach.
The funding will support communities addressing the root causes of homelessness and prioritize organizations that “facilitate treatment and recovery and prohibit funding the widespread use of illicit drugs and distribution of paraphernalia,” according to a news release from HUD.
The notice of funding opportunity includes a $1.3 billion investment in new projects, with priority given to transitional housing and supportive service projects. The agency will accept applications through Aug. 26.
HUD also said the funding opportunity ties funding to performance and increases competition among applicants by requiring Continuum of Care recipients to prioritize the most “successful” projects rather than automatically renewing funding.
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