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On August 7, 2026, the U.S. District Court for the District of Rhode Island set aside the U.S. Department of Housing and Urban Development’s (HUD) Fiscal Year (FY) 2026 Continuum of Care (CoC) Competition and Youth Homelessness Demonstration Program (YHDP) Grants Notice of Funding Opportunity (NOFO) in its entirety.
As a result, the Long Beach Homeless Services Bureau (HSB) is placing all local FY 2026 CoC Program Competition activities on hold until further notice.
Previously announced local deadlines are suspended. Long Beach CoC partners and applicants do not need to take further action under the prior competition timeline at this time.
What This Means for the Long Beach CoC
The Long Beach Homeless Services Bureau, as the Collaborative Applicant and Unified Funding Agency for the Long Beach CoC, is placing all local FY 2026 CoC Program Competition activities on hold until further notice.
This includes:
- Reallocation grant decisions
- Local scoring, ranking, and submission activities
- Selection and ranking of renewal project applications
- Selection and ranking of new project applications
Previously announced local deadlines associated with the FY 2026 competition are suspended.
No further action is required under the prior local competition timeline until the City of Long Beach provides further instructions.
What the Court Decided
The Court found that HUD did not complete the public notice-and-comment process required by the McKinney-Vento Homeless Assistance Act before using the FY 2026 NOFO with new funding incentives and priorities, including the $1.3 billion set-aside for new projects.
The Court determined that HUD did not follow the required process and vacated the FY 2026 NOFO in its entirety.
The decision does not permanently prohibit HUD from pursuing a future FY 2026 funding notice with similar policy changes. The Court declined to issue a permanent injunction and expressly left open the possibility that HUD could take future action after completing the required process. HUD may also appeal the decision. The Court did not rule on the plaintiffs’ remaining substantive challenges to the FY 2026 NOFO.
Why This Matters for Providers and Applicants
The FY 2026 NOFO made significant changes to the federal CoC competition. Among those changes, Tier 1 was reduced to 60% of each CoC’s Annual Renewal Demand, and up to $1.3 billion was set aside for new projects, with priority for Transitional Housing and Supportive Services Only projects.
These changes increased the amount of existing renewal funding subject to competition. As a result, CoCs including Long Beach CoC, had to consider reallocation, renewal, transition, and new project funding decisions under a substantially different federal funding structure.
Long Beach CoC’s local planning and preliminary decisions were made in response to that federal funding framework and structure and risk of non-renewal for existing projects in Tier 2.
Because the FY 2026 NOFO has now been set aside, those local activities and preliminary decisions are on hold until further federal guidance is available.
The Court’s decision follows a period of repeated changes and legal challenges affecting federal CoC funding, creating continued uncertainty for CoCs, service providers, and people whose housing depends on these grants.
The National Alliance to End Homelessness (NAEH), a plaintiff in the litigation, estimates that at least 97,000 people currently housed through CoC-funded permanent housing could lose their housing if a substantially similar FY 2026 funding approach ultimately takes effect.
What Happens Next
HUD has acknowledged the August 7 court decision in a listserv communication and confirmed that the FY 2026 CoC NOFO and its August 26, 2026, application deadline are no longer in effect. HUD is currently unable to accept applications under the FY 2026 NOFO.
HUD stated that it is evaluating the Court’s order and considering legal options, including a possible appeal to the U.S. Court of Appeals for the First Circuit. HUD has not yet announced a revised competition process or new application deadline.
HUD indicated that additional guidance will be issued through the SNAPS Competition Listserv and published on HUD.gov as it becomes available.
The Long Beach Homeless Services Bureau will provide additional information about the local competition process as federal guidance becomes available.
Continued Partnership
Beginning with the FY 2025 CoC funding process and continuing through FY 2026, communities nationwide have been required to repeatedly adjust to changing federal requirements, delayed federal funding decisions, litigation, and significant shifts in the CoC Program.
We recognize the considerable time, planning and uncertainty this has created for providers and the people they serve.
The City of Long Beach Homeless Services Bureau appreciates the continued patience, understanding and collaboration of our funded agencies, applicants and community partners as we navigate this prolonged period of federal funding uncertainty.
Additional Resources
For additional context regarding the court decision and potential impacts to FY 2026 CoC funding, interested parties may review:
Stay Informed
All parties interested in the FY 2026 CoC Program Competition are encouraged to monitor future communications from the Homeless Services Bureau by signing up for HSB newsletters and communications.
Questions regarding the Long Beach CoC local competition process may be directed to HomelessServicesAdmin@longbeach.gov with the subject line “FY 2026 CoC NOFO.”
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