Federal policy and budget battles: HUD NOFO overhaul, legal challenges, state anti-camping laws, Vermont restructuring, HHS funding, national trends, and major housing bill
Key Questions
What was the outcome of the court ruling on HUD's 2025 NOFO?
A federal court vacated the Trump HUD 2025 NOFO conditions on CoC funds, protecting Housing First and $3B supporting 170,000 people across 21 states.
What changes are proposed in the new HUD NOFO?
The updated NOFO removes the PSH cap but sets aside $1.3B for temporary programs and lowers Tier 1 renewal to 60%, prompting new lawsuits from a 20+ state coalition.
What does the 21st Century ROAD to Housing Act include?
The landmark housing bill became law without Trump's signature and includes CDBG penalties for cities like LA and SF while emphasizing affordable multifamily development.
Why did El Cajon reject ERF grant funding?
El Cajon declined a $5M ERF grant due to philosophical disagreement with Housing First principles, aligning with broader recovery-first policy debates.
What restructuring is occurring in Vermont's homelessness system?
Governor Scott signed H.938 to restructure the system, prompting CVOEO and Champlain Housing Trust to seek a site for a new 100-bed year-round shelter.
Major court win: federal court vacates Trump HUD 2025 NOFO conditions on CoC funds, protecting Housing First and $3B for 170,000 people; ruling binding for 21 states (MN AG) and 19 states (MI AG). 2026 NOFO still pending; 20+ state coalition files new lawsuits challenging $1.3B set-aside for transitional housing, claiming 97,000 people at risk. HUD launches second attempt: new NOFO removes PSH cap but sets aside $1.3B for temporary programs, drops Tier 1 renewal to 60%. NAEH files lawsuit. HUD opens $193M youth homelessness fund. LA HB 211 criminalizes public camping; NC HB 437 vetoed by Gov. Stein (July 8), override possible. VT Gov. Scott signs H.938 to restructure system. HHS announces $700M+ new funding including $96M STREETS program. National homelessness down 3% but 31% above pre-COVID. HUD data manipulation revealed: scrubbed gender data, downplayed chronic homelessness. Rigorous RRH study from LA County finds effects fade for individuals after three years. Landmark housing bill becomes law without Trump's signature; California-focused explainer highlights CDBG penalty for LA/SF. HUD-VASH 2,532 new vouchers. Spokane officials fear 50% cut in HUD grants. Pendleton OR lawsuit. San Jose and Austin post-Grants Pass enforcement case studies. NC Gov. Stein vetoes HB 437. MN Gov. Walz $40M prevention fund. Chicago providers warn HUD's PSH-to-transitional shift could leave more on streets. New: El Cajon, CA rejects $5M ERF grant over philosophical disagreement with Housing First, mirroring recovery-first pushback. CVOEO/Champlain Housing Trust seeks site for 100-bed year-round shelter in VT under H.938 restructuring.