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Amid Pressure, Trump Administration Backs Down on Changes to Critical Housing Program

December 9, 2025

Bay Area Rep. Sam Liccardo led an effort opposing the changes.

WASHINGTON, DC – The Trump Administration announced the reversal of its proposed funding allocation in the Continuum of Care (CoC) Program, to restore billions of resources for the permanent housing necessary to avoid pushing 170,000 extremely low-income families out to the street.  The Administration’s withdrawal of its Notice of Funding Opportunity (NOFO) follows significant pressure by housing advocates and Congressman Sam Liccardo (CA-16), who rallied 32 colleagues in demanding answers from Housing and Urban Development Secretary Scott Turner, regarding the administration’s abrupt plan to cut billions from a proven homelessness-prevention program. States, local governments, and non-profits also filed two lawsuits challenging the rule, and the reversal anticipated imminent hearings in those suits. 

The CoC Program has become the nation’s most effective tool for helping vulnerable Americans secure stable housing and access to supportive services. The administration’s proposed changes would have slashed existing funding that would push more than 2,300 people in Liccardo’s district—and more than 170,000 individuals nationwide—back into homelessness.

“This is a win for common sense—and for the thousands of families who rely on permanent supportive housing to stay safe and stable,” said Liccardo. “We turned up the pressure with our letter and by uplifting  stories like Katayna’s—a young mother who just moved into an apartment thanks to federal CoC funds for permanent housing. She and so many others can breathe easier today knowing their housing isn’t suddenly in jeopardy.”

We must keep treating our housing crisis like the crisis it is,” Liccardo continued. “Keeping this program intact is a critical step in the right direction, and I’ll continue holding this administration accountable to protect proven solutions.”