Official title: To amend the McKinney-Vento Homeless Assistance Act to incentivize local solutions to homelessness.
Introduced May 19, 2026 by Sylvia Garcia · Last progress May 19, 2026
The bill increases local flexibility and faster service delivery for housing and homelessness needs through temporary HUD waivers, but it risks weakening statutory spending protections, creating funding uncertainty for providers, and potentially enabling harmful relocations if HUD oversight does not catch problematic waivers in time.
Local governments can reallocate HUD funds more flexibly for FY2027–FY2030 to address urgent housing and homelessness needs, enabling quicker, locally tailored responses to crises.
Low-income individuals and people experiencing homelessness may receive faster or more tailored services because waivers let funds be used for locally prioritized interventions tied to Consolidated Plans.
Nonprofits and local governments gain greater transparency and timeliness because HUD must publish waiver requests and revocations online and decide requests within 60 days.
Taxpayers and program beneficiaries may face reduced statutory expenditure protections, increasing the risk that funds are diverted away from statutorily prioritized uses.
Low-income individuals and renters could be harmed if recipients attempt relocations without providing rehousing options; HUD's ability to block such waivers depends on timely review and the information available to HUD.
Subrecipients and service providers (nonprofits, Continuums of Care) could face less guaranteed funding stability and greater uncertainty if recipients use waivers to change planned expenditures.
Based on analysis of 2 sections of legislative text.
Allows HUD grantees to request waivers of a homelessness expenditure limit for FY2027–2030 with public notice, HUD review within 60 days, and protections against relocations without housing alternatives.
Allows recipients of certain HUD homelessness funds to request waivers of the statutory expenditure limit for grants covering fiscal years 2027–2030. The bill sets requirements for waiver requests, public notice and input, HUD review timelines, transparency rules, and safeguards that block waivers from recipients that relocate or threaten to relocate people or property without providing housing alternatives. Defines what information recipients must submit with waiver requests (local need, expenditure plan, link to the Consolidated Plan, and public input), requires recipients to notify subrecipients and Continuums of Care before applying, requires HUD to publish requests and decisions online and to act within 60 days, and sets rules for revoking approved waivers with public justification and notice to subrecipients.