Our national system for homelessness support and response is bracing for major federal funding and policy shifts, changes that will be felt most acutely by people already facing the steepest barriers, including individuals with conviction histories.
Major funding delays are expected to push the next HUD Continuum of Care (CoC) Program funding notice to no earlier than late January 2026, with awards likely not announced until June. With one-third of all CoC grants expiring during this same window, many programs will simply run out of money, even if they are renewed. For people with conviction histories, who already face limited housing options and heightened screening barriers thanks to AI-powered exclusion, these service disruptions mean even fewer pathways to stable housing and a greater risk of returning to homelessness. For individuals who remain on community control, parole, or any form of monitoring, this could also mean a technical violation and re-incarceration.
HUD’s proposed 30% cap on permanent housing funding will force CoCs to reduce existing Permanent Supporting Housing and Rapid Rehousing—the very programs most likely to house people with criminal records—in order to create new project types. This shift directly threatens some of the only housing interventions proven to work for individuals navigating reentry.
Simultaneously, anticipated changes to the award process could dramatically shrink Tier 1, placing more funding at risk and tying renewals more tightly to CoC scores. Programs serving people with conviction histories—often under-resourced and stigmatized already—may be disproportionately vulnerable to cuts similar to losses felt throughout 2025 as federal funding priorities changed.
New penalties for organizations misaligned with federal priorities could further destabilize providers that use harm reduction, racial equity frameworks, or gender-inclusive practices. This will force many reentry organizations to retool programming, marketing, and could impact relationships with philanthropic partners. The risk of CoC point deductions in scoring or outright project rejection could limit services for people leaving incarceration.
HUD is also expected to realign policy priorities and scoring with the July 24, 2025 Executive Order “Ending Crime and Disorder on America’s Streets,” signaling a shift toward public safety-oriented framing that may deprioritize housing solutions for people with criminal records.
Finally, signals from the Administration suggest a willingness to redirect funds to preferred jurisdictions or organizations, potentially awarding grants outside the CoC competition. This could reduce funding stability for established reentry and homelessness providers, disrupting continuity of care and impacting the economic mobility of individuals employed through CoC dollars.
Together, these changes represent a profound threat to housing access for people with conviction histories and likely will only increase the data showing that those living with a conviction history are ten times more likely to be unhoused. As policies shift, communities must work proactively to protect the programs that support successful reentry and long-term stability.
Congress has the power to renew all existing Continuum of Care contracts in their 2026 Appropriations Bill, but time is running out to contact your lawmaker. Leverage the links below to learn more about the issue, how you can get involved before the bill passes out of committee, and ways to enhance your advocacy.
From the National Alliance to End Homelessness:
FY2025CoC Program NOFO Full Analysis
How HUD’s Delays Will Impact Local and State Governments
Overall Side-by-Side Comparison of FY24 to FY25
ACT NOW: Congress Must Stop HUD
From the Corporation for Supportive Housing:
Tell Congress to Protect 170,000 Households from Losing Their Home
From the JustUS Coordinating Council:
Tools of the Game Advocacy Resource Toolkit