Policy & LawBehavioral healthFresno

HUD's Shift Away from Housing First Reaches Its Deadline. What It Means for Behavioral Health.

The largest federal homelessness grant program is being redirected toward transitional housing and services. The policy is contested in court; the money is moving anyway because Congress requires awards by December 1.

  • Competition closed September 30, 2026
  • Appeal pending
  • Comment period open to October 13, 2026

By Kanwar Partap Singh Gill, MDPublished Record verified through

The federal government's largest homelessness grant program is being redirected from permanent supportive housing toward transitional housing, treatment and services. The change is being challenged in court, but the money is moving anyway, because Congress requires the Department of Housing and Urban Development to award it by December 1.

How it got here

Date (2026)Event
June 1HUD issues its fiscal year 2026 Continuum of Care funding notice, about $4.04 billion, including a set-aside of about $1.3 billion for new transitional housing and supportive-services-only projects (Smart Cities Dive)
July 2National advocates and local governments sue
August 7A federal district court in Rhode Island sets the notice aside under the Administrative Procedure Act for lack of notice and comment (Public Rights Project)
August 14HUD appeals
September 11HUD publishes its changes for public comment, due October 13 (Community Solutions)
September 16The First Circuit allows HUD to proceed while the appeal is considered, citing the December 1 statutory award deadline
September 18HUD reopens the competition with a September 30 deadline (NACo)

The two positions

HUD's Secretary has argued that Housing First, which places people in permanent housing without preconditions such as treatment participation, has not reduced homelessness, and that federal money should promote treatment, recovery and self-sufficiency. A HUD spokesperson has pointed to a 27 percent national rise in homelessness since the model was adopted. Advocates and the jurisdictions that sued argue that Housing First is supported by evidence, that the new criteria were adopted unlawfully, and that the shift endangers existing permanent housing. The National Alliance to End Homelessness has estimated that at least 97,000 people are at risk (CT Mirror).

The health stakes

AnalysisPermanent supportive housing is, in practice, part of the behavioral-health system. It is where many people with serious mental illness and substance-use disorders receive stable care. A shift toward time-limited transitional housing changes where clinical follow-up happens and how long it lasts. In Fresno County, clinicians should expect the effects to appear first in hospital discharges and street-medicine caseloads, well before they show up in any federal statistic.

What happens next

Public comments on HUD's changes close on October 13, 2026. HUD must make awards by December 1. The First Circuit will decide the appeal on its merits. This site will report what the Fresno–Madera Continuum of Care applied for and received when those decisions are public.

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