The Department of Housing and Urban Development (HUD) has unveiled a $3.9 billion funding opportunity to address the youth homelessness crisis through the Continuum of Care (CoC) program. The application window is open until Jan. 14, 2026.
The CoC program is designed to deliver financial support and rehouse those who are most vulnerable to homelessness. These include individuals and families experiencing homelessness people traumatized from leaving domestic violence environments, dating violence sexual assault and/or stalking and youth experiencing homelessness.
HUD will use the CoC’s Youth Homelessness Demonstration Program (YHDP) as a vehicle for the $3.9 billion Notice of Funding Opportunity (NOFO). The initiative targets youth experiencing homelessness, providing support to develop and implement coordinated community approaches to ensuring the nation’s youth have housing and achieve self-sufficiency.
Applicants will receive maximum awards of up to $25 million. Entities that may apply for the program include:
- State and county governments.
- Public/Indian housing authorities.
- Special district governments.
- Nonprofits.
- Native American tribal governments.
- Native American tribal organizations.
- City of township governments.
- Faith-based organizations.
The renewal of HUD operations follows the conclusion of the 43-day government shutdown, bringing the department back online to provide housing and rental assistance programs. As part of reinstating federal payment systems and funding for federal government departments and branches, the administration instituted cuts to HUD’s larger CoC program. Notably, a provision requiring the department to award CoC renewals for 12 months is missing from the legislation.
This exclusion is part of HUD’s recent policy changes that redirect a majority of CoC funding from permanent housing to transitional shelter and support services. Approximately 70% of associated projects will now have to compete for funding, ensuring that only programs with demonstrable results for housing and self-sufficiency receive ongoing federal support.
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