HUD FY2026 budget and CoC/PSH policy wins amid court blocks on Trump changes
Key Questions
What is the total HUD budget for FY2026 and key increases?
The FY2026 HUD budget totals $77.3 billion, an increase of $7.3 billion. It allocates $38.4 billion to Section 8 and $4.4 billion to Continuum of Care (CoC) programs, with $3.9 billion uncapped for permanent supportive housing (PSH).
How have recent court decisions affected PSH funding?
Appeals courts rejected Trump administration attempts to cut PSH funding, protecting $48 million for Boston and Santa Clara, and $75 million for Washington and Rhode Island. These wins ensure stability amid litigation. Federal judges ruled the changes unlawful in cases like Rhode Island and Santa Clara County.
Which areas benefited from the appeals court wins?
Boston and Santa Clara County saved $48 million each, while Washington and Rhode Island protected $75 million in PSH funds. These rulings blocked proposed restrictions on federal housing grants for homelessness.
What ties exist between this budget and other homelessness issues?
The budget ties to Texas tent encampments and GAO reports on VASH vouchers. Near-term developments include potential SCOTUS review and HUD guidance on funding.
What were the Trump administration's efforts that faced setbacks?
The administration tried to rewrite federal housing grant criteria for PSH and CoC programs, imposing restrictions that courts struck down. Rulings in Seattle, Rhode Island, and Santa Clara preserved existing funding levels.
FY2026 $77.3B (+$7.3B), Section 8 $38.4B, CoC $4.4B; RI court strikes politicized criteria (harm reduction/trans/sanctuary); appeals secure Boston/Santa Clara/WA/RI funds. Berkeley ruling protects vs sweeps. Near-term SCOTUS/HUD guidance/NOFO.