In September, the Department of Housing and Urban Development, or HUD, said it would cut next year’s funding for permanent housing in half. Its new priorities would be transitional housing, supportive services, and faith-based providers. It also outlined a new point system for awarding Continuum of Care grants.
The Continuum of Care program gives people experiencing homelessness long-term access to a spectrum of resources. It’s supposed to lead to permanent housing. HUD threatened to deduct points if the organization applying for the grant had enacted DEI initiatives in the past.
Earlier this month, a coalition led by Santa Clara County sued HUD, saying that these criteria are illegal. On Monday, HUD withdrew its new funding guidelines, and said it would revise them.
