A federal appeals court on September 16, 2026 temporarily lifted a block preventing the Department of Housing and Urban Development (HUD) from issuing homelessness grants using new and controversial criteria that LeadingAge opposes.

Previously, a district court had issued a stay on the agency’s overhaul of the Continuum of Care (CoC) funding, through which HUD attempted to steer funding away from Permanent Supportive Housing used by LeadingAge members and instead toward transitional housing and services.

Following the stay, HUD appealed and also asked for temporary relief while the case continues in court. In response, the appeals court granted HUD’s request, allowing the agency to issue homelessness funding under new guidelines, in part because the court thinks HUD will ultimately succeed on the merits of its appeal, and in part because HUD has a statutory obligation to make the awards by December 1, 2026 under the Consolidated Appropriations Act, 2026, which is much earlier than any final ruling is likely to be issued.

The bottom line is that HUD can now move forward making awards under the challenged CoC notice of funding opportunity (NOFO) for FY26. However, whether HUD complied with the law in issuing the NOFO still needs to be determined by the court, but a full determination may arrive too late to adjust any already-issued awards.

LeadingAge is deeply concerned with the new direction of the funding grants and will continue to advocate for proven, long-term homelessness interventions for older adults, like Permanent Supportive Housing.