Congress has passed the Fiscal Year 2026 HUD appropriations bill, providing $77.3 billion for HUD — an increase over FY25 funding levels — and preserving essential housing and homelessness programs nationwide. The bill supports continuity for supportive housing and helps communities respond to rising rents, operating costs, and growing service needs.
A key provision establishes protections to prevent funding disruptions for Continuum of Care (CoC) programs while the FY25 NOFO remains under litigation. HUD is required to renew CoC grants expiring in early 2026 for a full 12 months, with additional automatic renewals scheduled throughout the year if a new NOFO has not been issued. Renewals must match prior award amounts and include cost-of-living and fair market rent adjustments, helping programs maintain stability.
The law also directs HUD to fund at least 60% of each CoC’s Annual Renewal Demand in the FY26 NOFO, providing greater predictability for community planning. With the President’s signature, HUD will begin immediate implementation, including renewing contracts expiring between January and March.
The passage of the FY26 HUD appropriations bill reflects the powerful impact of coordinated advocacy, and we want to extend our sincere gratitude to advocates across Alabama who raised their voices, engaged policymakers, and helped highlight the importance of protecting critical housing resources. Your outreach, partnership, and persistence played an important role in advancing investments that sustain supportive housing and homelessness programs in our communities.
This milestone represents meaningful progress for housing stability across our state, and we are grateful for the continued leadership of Alabama partners, providers, and community members who work every day to ensure people have access to safe, stable housing. Together, we will keep building momentum to advance policies and investments that strengthen housing opportunities for all Alabamians.