Continuum of Care (CoC) Program

Last week, Congress released the fiscal year (FY) 2026 HUD appropriations bill after several months of negotiations. The final agreement provides $77.3 billion for HUD in FY 2026,representing an increase over the yearlong continuing resolution that passed for FY25. 

The bill maintains stable funding across most accounts and includes targeted increases to help programs keep pace with rising rents and operating costs. 

• Tenant-based Rental Assistance: $38.439 billion, including $34.96 billion for contract renewals, $15 million for Veteran’s Supportive Housing vouchers, and $30 million for Family Unification Program vouchers, with most of the latter set aside for youth exiting foster care.  
• Emergency Housing Vouchers: While Congress did not provide new funding specifically for Emergency Housing Vouchers (EHVs), the bill increases Tenant Protection Vouchers by $264 million, for a total of $600 million, and allows public housing authorities to transition EHV holders to TPVs and other vouchers to ensure continued assistance. 
• Project-based Rental Assistance: $18.043 billion, including $1.031 billion for housing for older adults and $287 million for housing for people with disabilities. 
• Homeless Assistance Grants: $4.417 billion, including $290 million for Emergency Solutions Grants, $107 million for Youth Homeless Demonstration Programs, and $4.010 billion for the Continuum of Care (CoC)—which incorporates $43 million for cost‑of‑living adjustments and   $52 million for new rapid re‑housing projects and supportive services for  survivors of domestic violence. 
• Housing and Community Development: $3.3 billion for Community Development Block Grants and $1.250 billion for the HOME Investment Partnerships Program, supporting local efforts to expand affordable housing and strengthen community infrastructure. 

The bill also includes important policy updates to the CoC program. It directs HUD to renew all contracts expiring in the first quarter of 2026 for a 12-month period. Contracts expiring later in the year are dependent on HUD’s actions surrounding the 2025 NOFO that is currently in litigation. If the litigation continues or the FY25 NOFO is not issued and awards made, additional renewals will be triggered automatically for the second-quarter on April 1 and the remainder of the year on July 1.

These renewals must match the prior award amount and include adjustments for cost of living and fair market rent increases, ensuring programs can maintain operations. 

The bill also introduces a new requirement for the FY26 CoC NOFO directing HUD to fund at least 60 percent of each CoC’s Annual Renewal Demand. CSH is closely reviewing this provision and assessing what it may mean for communities, program stability, and future planning. We will share more analysis as soon as we have clearer insights into how HUD may apply this requirement. 

The House has already approved $324 million for the Community Development Financial Institutions (CDFI) Fund as part of the Financial Services appropriations bill. That funding will advance into the final package sent to the Senate. Congress also approved $5 million for supportive housing through the Second Chance Act Pay for Success Fund at the Department of Justice. 

The House has voted to pass the FY26 HUD bill as part of a three-bill minibus. The Senate returns from recess this week and is expected to take up the bill shortly thereafter. In coordination with our partners at CSH, NAEH, and NLIHC, we will continue to monitor developments and provide timely updates as Congress moves forward in the appropriations process.