- “treatment and recovery,
- reducing unsheltered homelessness,
- decreasing returns to homelessness, and
- increasing the earned income of participants.”
- Although we have limited information at this time, the CoC Board will discuss how our community will respond and adapt to this unexpected shift in funding strategy.
- Additionally, our team is compiling an inventory of federal funding supporting regional homelessness services.
Dear Community Partners,
The Maricopa Regional Continuum of Care (CoC) remains dedicated to keeping you informed in this rapidly evolving landscape. We are sending this email through multiple channels, so we apologize if you receive this twice.
We acknowledge the urgency of these potential impacts and are diligently working on decisions and strategies. Our team intends to maintain regular communication regarding the effects of HR1, the FY2025 Notice of Funding Opportunity (NOFO), and other changes at the federal level.
This message provides a high-level summary of the following topics:
- FY2025 NOFO Update
- HR1 (“One Big Beautiful Bill”)
- FY2026 THUD Appropriations
- NAEH Guidance for Advocacy and Preparedness
- SAMHSA SOAR TA Center Closure
- Staying Informed
HR1 / “One Big Beautiful Bill”
Passed last week, HR1 — also referred to as the “One Big Beautiful Bill” or the “Mega Bill” — introduces sweeping changes:
- $1.1 trillion in cuts to Medicaid
- Expansion of work requirements, including for people experiencing homelessness
- Reduced access to essential healthcare and services
The National Alliance to End Homelessness (NAEH) has released a public statement outlining concerns. These changes are expected to disproportionately affect vulnerable populations, including many served by CoC- and ESG-funded programs.
While this reconciliation package addresses mandatory spending, programs administered by HUD (e.g., HCV, CoC, etc.) are funded through discretionary funding, which is established through the appropriations process.
THUD Appropriations Hearing
The House Transportation, Housing, and Urban Development (THUD) subcommittee is expected to begin their review of the FY2026 THUD bill on July 14, 2025. The outcome of this hearing will significantly impact HUD-funded housing programs, including CoC funding. The Trump administration’s FY26 appropriations request proposed consolidating core rental assistance programs — such as Housing Choice Vouchers, public housing, Section 811, Section 202, and the CoC Program — into a State Rental Assistance Block Grant. The National Low Income Housing Council provides further information on how to take action.
NAEH Guidance
Sessions at last week’s NAEH annual conference addressed how communities can prepare for and respond to changes in federal funding:
- Develop contingency and crisis response plans for alterations in federal funding.
- Coordinate with states and counties anticipated to receive block grant funding.
- Identify core functions not safeguarded under proposed reforms (e.g., HMIS, Coordinated Entry) and evaluate alternative funding sources.
- Prepare for the potential impact of camping bans and criminalization on the visibility of homelessness, the PIT count, and advocacy efforts.
- Take additional measures as a CoC to protect client data and privacy in HMIS.
- Proactively engage elected officials with impact assessments and projected consequences of funding loss on services.
- Remain vigilant for legal guidance and advocacy opportunities from NAEH and other national organizations.
The CoC Board will discuss paths forward and how our community can respond to possible changes.
SAMHSA SOAR TA Center Closure
On July 9, 2025, SAMHSA announced that it has discontinued funding for the SOAR TA Center. As a result, the SOAR online training program, along with the SOARWorks website and online resources, will be end as of August 18, 2025. For more information, please refer to the SOAR TA Center Closing FAQs.
Staying Informed
Our team recommends the following resources for the most timely updates on these topics:
- NAEH’s CEO Corner
- National Low Income Housing Council’s newsletters and action emails
- SchoolHouse Connection Newsletter
- Join the CoC’s Roundtable space on Federal Policy.
This is a space for discussion regarding federal homelessness policy
changes, where we will post more frequent updates for anyone who wants
to stay in the know. Join by following this link: https://app.civicroundtable.
com/portal/join/federal- homelessness-policy-updates
If you have a source you would like to recommend, please email our team at communications@maricopacoc.org
Reference Guide
|
Decision Item |
Details |
|
HR1968 / “Full-Year Continuing Appropriations and Extensions Act, 2025” |
This Continuing Resolution (commonly referred to as “CR”), passed in March 2025, ensured CoC Program funding for FY2025. |
|
FY2025 NOFO |
HUD announced there will be an FY2025 CoC Program NOFO, despite the previously authorized two-year cycle. |
|
President’s 2026 Budget Proposal |
This budget proposal calls for the conversion of the CoC Program into state block grants and considerable reduction in HUD funding overall. If any part of this is enacted through Congress (via appropriations bills), it could apply starting in the 2026 budget cycle. |
|
HR1 / “One Big Beautiful Bill” |
Medicaid funding changes are scheduled to take effect in 2028, while work requirements will begin no later than December 31, 2026. For more information, please refer to this article: https://thehill.com/homenews/ |
|
FY2026 THUD Appropriations |
House markup begins July 14, 2025. Senate markup has not yet been scheduled. The current FY2026 budget deadline is September 30, 2025. This process could affect the CoC Program and/or HUD budget starting in 2026. |
Thank you for your continued partnership and advocacy. We will provide further updates as more information becomes available.
-MAG Community Initiatives Team
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