On June 1, 2026, the Department of Housing and Urban Development (HUD) issued its highly-anticipated funding notice for $4.04 billion in homelessness assistance awards for Fiscal Year 2026, continuing the agency’s effort to overhaul the program. The Notice of Funding Opportunity (NOFO) sets HUD’s policy goals for the Continuum of Care (CoC) program, which coordinates homelessness services and initiatives on a regional basis.

Despite ongoing legal battles related to a similar overhaul attempt within the 2025 funding notice, HUD for FY26 shifts awards away from Permanent Supportive Housing (PSH), promoting transitional housing instead. In HUD’s press release, Secretary Scott Turner decries permanent housing solutions that prioritize shelter for people experiencing homelessness, calling them “failures.”

According to the latest HUD data available, nearly 40% of PSH residents in 2023 were older adults, and HUD’s recent Homelessness Assessment Report indicates that 20% of people experiencing homelessness are 55 and older.

In addition, LeadingAge members who serve low-income older adults rely on PSH funding, including as a part of new developments through the Low-Income Housing Tax Credit (LIHTC) as required by certain states.

LeadingAge opposes the move by HUD to abandon proven homelessness supports and push older adults back into homelessness; stay tuned for further analysis.