Inside HUD’s Notice of Funding OpportunityHUD’s 2025 Notice of Funding Opportunity—since rescinded and shut down by a judge—was in the amount of $3.9 billion, higher than the $3.6 billion in funding available last year. “The kind of cuts that you’re talking about to permanent supportive housing, there isn’t something there to fill that gap,” Rubin-Stankiewicz said. Lawsuits and ArgumentsAt the end of 2025, two lawsuits were filed challenging HUD’s 2025 NOFO. “This directly reflects a Housing First approach that is centered on permanent housing, including permanent supportive housing, without preconditions regarding employment, sobriety, or the like,” the lawsuit stated. New permanent supportive housing projects would no longer be constrained by the 30 percent funding cap.