On December 23, 2025, a federal court issued a written preliminary injunction that affects the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) funding process. This decision is important for communities, providers, and partners working to prevent and end homelessness.

​

• Court Orders:

  • HUD must pause several recent actions related to Continuum of Care (CoC) funding.

  • HUD's cancellation of the 2024-2025 CoC and Youth Homelessness Demonstration Program Notice of Funding Opportunity (NOFO) has been halted.

  • HUD is stopped from advancing the new FY 2025 CoC NOFO and enforcing new conditions or deadlines associated with it.

​

• Return to Status Quo:

  • HUD is required to revert to the conditions that existed under the FY 2024–2025 NOFO.

  • HUD must process eligible renewal projects for FY 2025 using the FY 2024–2025 NOFO rules.

  • The court order does not mandate HUD to award or obligate funds yet.

​

• Communication Requirements:

  • HUD must inform communities and funding recipients about necessary steps for processing eligible renewals.

  • HUD's plan and timeline must be reported to the court by December 30, 2025.

​

• Implications for Providers and CoCs:

  • The ruling offers temporary stability and prevents sudden changes during the ongoing case.

  • Communities are encouraged to look for official guidance from HUD and be prepared to respond to renewal processing requests.

  • Updates will be provided as the case progresses.