This week in federal policy
Court vacates the FY2026 Continuum of Care notice. On August 7 the U.S. District Court for the District of Rhode Island ruled in State of Washington v. HUD and National Alliance to End Homelessness v. HUD that HUD's issuance of the FY2026 Continuum of Care (CoC) and Youth Homeless Demonstration Program notice violated the Administrative Procedure Act, and the court vacated it. HUD states that the August 26 submission deadline is no longer in force, that it is unable to accept applications, and that it is weighing an appeal to the First Circuit. Further guidance will come through the ESNAPS Competition Listserv. HUD
Congress already built a renewal backstop. Section 244 of the Consolidated Appropriations Act, 2026 directs HUD to renew CoC projects that expired or were set to expire in the first quarter of calendar 2026, and it added triggers for further delay. If funding was not awarded by April 1, projects expiring in the second quarter are to be renewed. If funding was not awarded by July 1, all remaining projects are to be renewed. National Association of Counties
Comment period on SNAP administrative cost sharing closes today. The U.S. Department of Agriculture proposed codifying a reduction in the federal share of state Supplemental Nutrition Assistance Program (SNAP) administrative costs from 50 percent to 25 percent beginning in fiscal year 2027, implementing Section 10106 of the One Big Beautiful Bill Act of 2025. Written comments were due on or before August 24. Federal Register
From Sacramento
The legislature's final week. The California Legislature must pass all bills by August 31, the last day of the 2026 session. August 21 was the last day to amend bills on the floor, so anything still moving is close to final form. Senate legislative calendar
What this means for Bay Area nonprofits
Providers holding CoC-funded permanent supportive housing should stop work on the vacated application and watch the SNAPS Competition Listserv. The live question is renewal coverage, not application strategy. Confirm with your collaborative applicant which grants fall under the Section 244 direction and what each current term end date is, then build cash flow that assumes a short-term renewal rather than a new multi-year award. Programs that braid CoC dollars with county contracts, particularly transition-age youth housing and behavioral health, carry the most exposure, because a lapse there interrupts housing and services at the same time.