DSHA responds to proposed changes to federal permanent housing assistance grant funding

Salisbury, Md. – Several states including Maryland and Delaware, have joined a suit against the U.S. Department of Housing and Urban Development after it released its proposed changes to the FY2026 Continuum of Care Notice of Funding Opportunity. State officials and housing advocates say the changes would include severe cuts to permanent housing assistance.

According to the Director of the Delaware State Housing Authority Matthew Heckles, though there is more funding for transitional housing which helps those who are visibly homeless, the lack of permanent housing assistance will lead to more people losing their homes.

“The likeliest outcome for someone in that situation is to probably return to homelessness, they really don’t have any other options.” Heckles said. “And so, that that’s how we get to the number for us here in Delaware of close to 400 people, that we have been serving for years, under this federal grant regime. Because this administration in Washington is changing that regime, [those 400] will lose the housing that they have been successful with.”