Continuum of Care Program
(Homeless Assistance)
Department of Housing and Urban Development~650,000 shelter beds/housing units; homeless individuals and families
What This Program Does
The Continuum of Care Program provides federal funding to local communities to address homelessness through permanent supportive housing, transitional housing, and related services. It supports approximately 650,000 shelter beds and housing units nationwide, serving homeless individuals and families. The program has operated under the Department of Housing and Urban Development since the early 1990s.
Who Would Be Affected
The proposed $0.4 billion cut (approximately 9%) would affect homeless individuals and families who rely on roughly 650,000 beds and housing units funded through the program. Communities most impacted include those with high rates of chronic homelessness, as the program has historically prioritized permanent supportive housing for people with disabilities and long-term housing instability. Local homeless service providers, shelters, and nonprofit organizations that receive these grants would also see reduced funding.
What This Cut Would Mean
The administration proposes shifting funding from permanent supportive housing toward emergency shelter through an expanded Emergency Solutions Grants program. In practical terms, this means fewer long-term housing placements for chronically homeless individuals and a greater emphasis on short-term shelter. Independent housing policy analysts have raised concerns that reducing permanent supportive housing — which research has shown to be effective at ending chronic homelessness — in favor of emergency shelter could increase long-term homelessness and ultimately raise costs, as emergency interventions are generally less effective at preventing people from returning to homelessness.
Administration's Stated Rationale
“CoC replaced by expanded Emergency Solutions Grants; focus shifts from permanent supportive housing to emergency shelter.”