SEATTLE — Nearly 4,500 Seattle and King County households could lose their housing and supportive services in 2026 after the federal Department of Housing and Urban Development (HUD) announced sweeping changes to its Continuum of Care (CoC) program, prompting urgent action from local and state leaders.
On Tuesday, Nov. 13, the Trump administration released its long-delayed Notice of Funding Opportunity (NOFO) for the CoC program—one of the nation’s largest funding sources for homelessness response. The updated guidelines drastically restrict the use of federal dollars for permanent housing, placing thousands of vulnerable residents at risk.
Seattle and King County currently receive about $65 million annually through CoC grants, which fund housing and services for individuals and families who were previously or are currently homeless. Under the new rules, no more than 30% of funding may be used to sustain permanent housing programs, a dramatic reduction from the region’s current allocation, where over 80% supports long-term housing stability.
Homelessness experts and local officials warn that without state or local intervention, the cuts could destabilize or eliminate entire housing programs serving veterans, families, people with disabilities, youth, and older adults.
“These changes are another cruel policy choice intentionally designed to harm our most vulnerable community members,” said Seattle City Councilmember Alexis Mercedes Rinck, who chairs the Select Committee on Federal Administration and Policy Changes. “Once again, local governments are being asked to step up to meet the moment.”
The NOFO’s release was delayed for months, creating another crisis: many existing CoC grants will expire before new awards are issued. Applications for the new cycle are due Jan. 14, 2026, and awards are not expected until June 2026—leaving a gap during which thousands could lose housing as early as the first quarter of next year. National advocates estimate that 170,000 people across the U.S. could fall into homelessness due to the rule changes and funding delays.
King County Councilmember Jorge Barón called the potential impact “devastating,” noting that hundreds of people already die on the streets each year. “The potential loss of these federal funds will cut off thousands more of our residents from the lifesaving shelter and housing they rely on,” he said.
King County Councilmember Teresa Mosqueda described the new restrictions as “an existential threat” to the region’s homelessness response system. She emphasized that regional collaboration—between Seattle, King County, service providers, and state and federal partners—will be essential to prevent mass displacement.
Washington State Rep. Nicole Macri warned that the state cannot fully backfill the federal cuts, especially amid anticipated reductions to federal Medicaid and food assistance. “We rely on federal partners,” she said. “The state’s unbalanced tax system is already failing to keep up with our needs.”
Local service providers echoed those concerns. Alison Eisinger, executive director of the Seattle/King County Coalition on Homelessness, urged swift local action to prevent people from returning to homelessness after years of stability. “Right now, as the federal government turns its back on housing and services… we urge local government to step up, protect our people and defend our homes,” she said.
In response, Councilmember Rinck has introduced a Seattle budget amendment (HSD-082-A-1) dedicating $11.8 million to sustain CoC-funded housing programs. The amendment is scheduled for discussion before Seattle’s Select Committee on Budget. Meanwhile, the King County Council will vote Nov. 18 on Councilmember Mosqueda’s proposal to develop a regional CoC contingency plan. The plan directs the County Executive to submit an appropriations bill no later than March 16, 2026.
The local actions come as 42 U.S. Senate Democrats issued a joint letter criticizing HUD’s changes and urging reconsideration.
For now, regional leaders say the priority is preventing thousands of residents—many who escaped homelessness years ago—from being pushed back into crisis.