Federal Funding Update for Fiscal Year 2026

As the federal budget landscape continues to shift, here’s what you need to know about the impact on youth homelessness programs.

This Friday, July 25, 2025, the President is expected to sign into law a recissions bill that takes back $9 billion in federal funding previously appropriated by Congress.

The rescissions bill cancels all Fiscal Year (FY) 2026 and 2027 funding for the Corporation for Public Broadcasting, which funds stations like National Public Radio (NPR), as well as a significant portion of FY2025 funding for foreign aid, global health programs, clean technology, and refugee assistance. Youth homelessness programs, and other programs that support youth and families experiencing homelessness, were not included in the rescissions bill.

This bill is in line with other funding changes that have happened this year—from funding freezes to grant cancellations—which all represent the Trump Administration’s fight to shift power over government spending away from Congress and to the Executive Branch.

On July 17, the House Appropriations Committee approved their version of the FY2026 Transportation, Housing and Urban Development, and Related Agencies (THUD) appropriations bill. This bill proposed:

• $290 million for Emergency Solutions Grants.
• $3.86 billion for Continuums of Care.
• No dedicated FY2026 funding for new projects under YHDP and YHSI.
• To rescind (take back) all $107 million in FY2025 funding for new projects under YHDP and YHSI.

Not yet. The House appropriations bills are only the first step in the annual appropriations process. Next, the Senate will release their version of the THUD appropriations bill. Then—following the August recess—the House and Senate must begin the long process of negotiating final spending bills. We likely won’t know final spending levels for YHDP, YHSI, and other youth homelessness programs until the end of this calendar year, at the earliest.

The House THUD appropriations bill is not law—the House and Senate still have to negotiate final funding levels. The proposal the House makes would only affect new YHDP/YHSI projects. The language overseeing funding for renewals (page 135, emphasis added) has not changed from previous years:

That amounts made available for the continuum of care program under this paragraph and any remaining unobligated balances under this heading in prior Acts may be used to competitively or non-competitively renew or replace grants for youth homeless demonstration projects under the continuum of care program…

The House and Senate aren’t expected to continue the appropriations process until after the August recess, when they will be in their home districts and states for the whole month of August (this is a great time for you to schedule in-district meetings and site visits!). Congress must pass spending bills by September 30 or else the government will shut down. It’s likely that they will pass short-term funding bills to buy themselves more time to negotiate final spending levels.

Neither the House nor the Senate have released proposed funding levels for the Runaway and Homeless Youth Act (RHYA) program or the McKinney-Vento Education for Homeless Children and Youth (EHCY) program—they likely won’t work on these until September. However, NN4Y has already started working on a strategy to reinstate the Street Outreach Program and to ensure that the next RHYA grant application rollout is a smooth process. We will keep you posted as advocacy opportunities arise.

• $304 million for the Runaway and Homeless Youth Act program administered by HHS.
  • Bipartisan House Dear Colleague Letter in support of increased funding for RHYA and EHCY.
  • Bipartisan Senate Dear Colleague Letter in support of robust funding for RHYA and EHCY.
• $200 million for the McKinney-Vento Education for the Homeless Children and Youth program administered by ED.
• $100 million for the Youth Homeless Demonstration Program administered by HUD.
• $25 million for the Youth Homelessness System Improvement grants.

Learn more about appropriations at the NN4Y Appropriations Take Action Page.