Housing advocates in North Carolina are raising concerns over changes to federal funding that could significantly affect efforts to address homelessness. The U.S. Department of Housing and Urban Development (HUD) is revising its Continuum of Care program, the largest initiative supporting homeless services, which will reduce funding for permanent housing projects and introduce new eligibility requirements.
The changes come in the middle of the usual two-year competitive grant cycle, creating pressure on organizations to quickly adapt. Liz Carbone, project specialist with the North Carolina Coalition to End Homelessness, noted that asking service providers to restructure programs that have operated for 15 years within a three-week timeframe is unrealistic and could hinder program effectiveness.
Advocates warn that the abrupt shift could delay funding for programs statewide and particularly leave nonprofits in rural areas without critical support. Carbone emphasized that the policy favors short-term solutions like shelters and street outreach, rather than the permanent housing resources needed to help North Carolinians exit homelessness for good.
According to the Urban Institute, 60 percent of permanent supportive housing beds in North Carolina depend on federal funding. In response to similar changes nationwide, local governments and nonprofit organizations are suing the Trump administration to block the policy adjustments.
