The NOFO Fight Isn’t Over: Funding, the Courts, and What’s at Stake for Michigan

In this episode of UnHoused & UnFiltered, hosts Nick Cook and Sarah Prout-Rennie break down the latest developments surrounding the FY2026 HUD Continuum of Care Notice of Funding Opportunity (NOFO)—and why recent court victories do not mean the fight is over. They explain how litigation challenging the FY2025 and FY2026 NOFOs centers on federal administrative procedures, constitutional concerns, states’ rights, and the limits of executive authority when changing congressionally established homeless programs. With HUD appealing the FY2026 ruling, Michigan providers now face continued uncertainty about when critical federal housing dollars will actually reach communities.Nick and Sarah examine what funding delays could mean on the ground, from people potentially losing housing to small nonprofits struggling to maintain services—particularly in rural communities where providers often serve as the primary safety net. They also discuss Michigan’s efforts to secure temporary state funding to help bridge a potential federal funding gap while litigation continues.The conversation goes beyond the courtroom to examine the larger debate over homelessness: whether communities will invest in housing and evidence-based services or increasingly rely on criminalization and institutionalization. Nick and Sarah connect that debate to rising housing costs, stagnant wages, and the reality that many people experiencing housing instability are working, aging, raising families, or living only one financial emergency away from homelessness.Most importantly, the episode is a call for collective action. Listeners are encouraged to contact members of Congress, educate local officials and community partners, challenge harmful narratives about homelessness, and explain how federal funding uncertainty affects real people and local organizations. The episode closes on a hopeful note by celebrating MCAH’s Breakfast of Champions honorees—recognizing extraordinary leadership in advocacy, community, data, volunteerism, youth engagement, and Homeless Awareness Month across Michigan.