Grants for Homeless Nonprofits: Federal, Local, and Private Funding Explained

Where grants for homeless nonprofits come from

Very few homeless service groups live on one grant. A typical budget blends federal awards, a city or county contract, a foundation grant or two, and individual donations. Each source has a different door, timeline, and set of strings. The table below compares them from a nonprofit’s point of view. For a program-by-program summary of federal shelter money, see our guide to federal grants for homeless shelters; this page focuses on how an organization wins and keeps that funding.

Inside your local Continuum of Care

A Continuum of Care is a local or regional planning body that covers a city, county, group of counties, or a whole “balance of state.” Its members include shelters, housing providers, local governments, health and school partners, and people with lived experience of homelessness. The CoC’s duties, under 24 CFR 578.7, include running a coordinated entry system, designating the area’s HMIS, and leading the annual application to HUD.

Here is how a typical funding round works:

1. HUD posts a Notice of Funding Opportunity (NOFO). It sets the total, the priorities, scoring, and each CoC’s renewal demand.
2. The CoC runs a local competition. It announces local deadlines, scores new and renewal projects, and may move money from weak projects to new ones (reallocation).
3. Projects are ranked into tiers. Tier 1 is more protected. Tier 2 projects compete nationally on the CoC’s score and their own rank.
4. The collaborative applicant submits one consolidated application. Each project also submits its own project application.
5. HUD announces awards and signs grant agreements with each recipient.

A new nonprofit rarely wins a CoC grant in its first year. The usual path is to join the CoC, attend meetings, serve on a committee, start entering data in HMIS through another funding source, and apply for a bonus or reallocated project once you can show results. CoC grants also require a 25% match on most costs, so line up cash or in-kind support early.

CoC changes in 2025 and 2026

The CoC program has gone through an unusual two years. This is a neutral summary from the sources listed; check with your CoC lead agency for current local deadlines.

• FY2025. According to the Congressional Research Service, HUD’s FY2025 notice made only 30% of annual renewal demand available in Tier 1, down from roughly 90% in past rounds. Providers sued, and the notice was stayed and later vacated. Congress then directed HUD in its FY2026 spending law to renew FY2025 grants noncompetitively.
• FY2026 notice. HUD released the FY2026 CoC and Youth Homelessness Demonstration notice on June 1, 2026, making $4.04 billion available. CRS reports that it puts 60% of renewal demand in Tier 1, the minimum set by Congress, and sets aside $1.3 billion for new projects prioritizing transitional housing and supportive services only. Scoring adds points for treatment and recovery services, required participation in services, and employment income. HUD also reserved discretion over awards based on factors outside scoring.
• Litigation. A lawsuit was filed on July 2, 2026. CRS reports that a federal court vacated the notice on August 7, 2026, and that on September 16, 2026 the First Circuit stayed that order while HUD appeals, letting the competition go forward. NACo reported a September 30 application deadline after the stay.

Supporters of the changes say they reward self-sufficiency and treatment. Advocates for permanent housing say they put tenants of existing projects at risk. Whatever your view, plan for uncertainty: build reserves where you can, diversify funding, and keep strong outcome data.

Winning ESG money from your state or city

Emergency Solutions Grants go by formula to states, larger cities, urban counties, and territories, which then choose nonprofit subrecipients. That makes ESG a local competition. To compete well:

• Find the right office. Large cities and urban counties get their own ESG. Smaller towns and rural areas apply through the state, usually the housing or community development agency.
• Read the Consolidated Plan and Annual Action Plan. These public plans say how the government will use ESG and when it takes applications. Comment during public hearings.
• Coordinate with the CoC. ESG recipients must consult with the CoC, and many score applicants on CoC participation.
• Plan for cash flow. ESG is usually paid as a reimbursement, so you spend first and get paid back.
• Meet the data rule. Under 24 CFR 576.400, ESG projects take part in coordinated entry and HMIS, with a comparable database for victim service providers.

VA grants for veteran-serving groups

The VA funds two large programs that community groups run. Supportive Services for Veteran Families (SSVF) pays private nonprofits and consumer cooperatives to provide rapid re-housing and homelessness prevention to low-income veteran families. The Grant and Per Diem program pays a daily rate to community agencies that run transitional housing and case management, and has offered other grant types for special needs and case management.

Both programs award grants through funding notices on Grants.gov, and awards often run for more than one year, so a new applicant may wait for the next cycle. Strong applicants show a working relationship with the local VA medical center’s homeless team, the CoC, and landlords. Our guide to churches that help the homeless shows how faith partners often supply the volunteers and space that strengthen these applications.

HHS youth programs beyond basic shelter

HHS’s Family and Youth Services Bureau funds the Runaway and Homeless Youth programs. Beyond emergency youth shelters, two lesser-known grants suit many nonprofits:

• Street Outreach Program. Under 34 U.S.C. 11261, HHS may make grants to nonprofit private agencies for street-based services to runaway, homeless, and street youth who have been, or are at risk of being, sexually abused or exploited, including trafficking. Experienced youth providers get priority.
• Maternity Group Homes. Funded under the Transitional Living Program, these serve pregnant and parenting youth, about ages 16 to 22, and their children with longer-term housing and parenting support.

These awards usually run several years. If you miss a round, you may wait years for the next, so track Grants.gov forecasts.

SAMHSA and behavioral health funding

SAMHSA’s main homeless program for most nonprofits is PATH, a formula grant that states pass to local providers for outreach and services to people with serious mental illness; contact your state mental health agency. SAMHSA has also run competitive grants for treatment and recovery services for people experiencing homelessness. Check Grants.gov for current notices rather than relying on past cycles.

Federal priorities have shifted here too. Executive Order 14321, signed July 24, 2025, directs HHS to make sure SAMHSA grants do not fund programs that fail to achieve adequate outcomes, naming “harm reduction” and “safe consumption” efforts. It also tells HUD to increase requirements that participants with substance use disorder or serious mental illness use treatment. Read each notice closely for these conditions.

FEMA’s Emergency Food and Shelter Program today

EFSP is small but flexible, and often a good first public grant for a young organization. Funding moves from FEMA to a National Board, then to local boards and state set-aside committees, which pick local recipient organizations. According to a June 2026 CRS overview:

• Phase 43 (fiscal 2025) received $117 million, and Phase 44 (fiscal 2026) received $123.5 million.
• The administration’s fiscal 2027 budget request included no EFSP funding. That is a proposal, not a law.
• Eligible uses include served meals or groceries, mass shelter and hotel stays, and limited rent, mortgage, and utility help, under National Board guidance.

The EFSP National Board site did not show published Phase 44 allocations when we checked. Ask your local United Way whether your county has an EFSP local board and when it meets.

Foundations, corporate giving, and United Way

Private money is often what lets a nonprofit start, cover match, or pay for things federal grants will not. A few patterns help:

• Community foundations know local needs and often fund smaller groups. Many run open grant rounds once or twice a year.
• Family and private foundations usually want a letter of inquiry first and fund groups they know. Ask for a call before you apply.
• Banks make grants partly to meet Community Reinvestment Act goals, and housing and homelessness work often fits.
• Hospitals and health plans sometimes fund medical respite, housing navigation, or outreach that lowers emergency room use.
• United Way chapters run local grant processes, often with volunteer review panels, and many convene the EFSP local board.

Most foundations require 501(c)(3) status. If you are not yet exempt, the IRS explains how to apply for recognition of exemption. A fiscal sponsor can hold grants for you in the meantime.

Getting registered to apply

Before applying directly for any federal grant, your organization needs:

1. A SAM.gov registration. SAM.gov entity registration gives you a Unique Entity ID (UEI). It is free and must be renewed every year. Your legal name and address must match IRS records.
2. A Grants.gov account. Follow the applicant registration steps, then have your E-Business Point of Contact give staff the roles they need to submit.
3. Agency systems. Some agencies use their own systems after Grants.gov. The Justice Department, for example, uses JustGrants.

Start at least a month before any deadline. Registration problems are one of the most common reasons applications miss deadlines. Use Grants.gov search to set alerts by agency and keyword.

What funders expect from grantees

Public and private funders look for the same basics, with a few new twists:

• HMIS participation. HUD-funded projects enter client data in the local HMIS. Victim service providers must not, and use a comparable database instead.
• Coordinated entry. Housing projects usually fill openings from the CoC’s priority list, not their own waitlist.
• Housing First, as currently stated. Recent HUD notices and EO 14321 move away from Housing First toward treatment, services participation, and self-sufficiency. Older VA and local contracts may still use Housing First language. Read each notice and agreement for its current rule rather than assuming.
• Financial controls. Under 2 CFR 200.501, an organization that spends $1,000,000 or more in federal awards in a fiscal year needs a single audit. Groups without a negotiated indirect rate may charge up to 15% de minimis under 2 CFR 200.414.
• Outcomes. Exits to permanent housing, length of stay, returns to homelessness, and income gains are what most scoring tools measure.

A first-year funding plan

1. Secure your legal base: 501(c)(3) status or a fiscal sponsor, a board, and basic financial policies.
2. Register in SAM.gov and Grants.gov and set funding alerts.
3. Join your CoC and ask the lead agency about HMIS access and the local competition calendar.
4. Contact your ESG office and United Way about subrecipient rounds and the EFSP local board.
5. Meet two or three local funders such as a community foundation, a bank, and a health system.
6. Track outcomes from day one so your second-year applications have real numbers.

Related guides

• Emergency Solutions Grant program in Arkansas
• Government assistance for homeless people
• Grants for homeless individuals
• Grant opportunities

Frequently asked questions

This guide is general information, not legal or grant-writing advice. Federal funding rules, court rulings, and deadlines change, so always follow the current funding notice. National Relief Program is an independent website and is not a government agency.