How much did HUD Secretary Scott Turner cut the share of Continuum of Care renewal funds that can go to permanent housing in FY 2025?

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HUD slashed the share of Continuum of Care (CoC) renewal funds allocated to permanent housing from roughly 87% to just 30% for FY 2025. The remaining 70% now must go to transitional housing, shelters, and supportive services. This reallocation shifts $3.9 billion in federal homelessness funding away from Housing First—the two-decade policy giving chronically homeless people permanent homes first, then services—toward a treatment-first model requiring participation in addiction or mental health programs before housing. Twenty states and D.C. sued on November 25, 2025, arguing HUD exceeded its statutory authority under the McKinney-Vento Homeless Assistance Act.

How much did HUD Secretary Scott Turner cut the share of Continuum of Care renewal funds that can go to permanent housing in FY 2025?

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