Bill
HR 8878
The bill allows local recipients to waive certain funding caps for homelessness programs from 2027–2030 if they justify needs, plans, and public input.
## Key provisions and changes
- Amendments to Section 414 of the McKinney-Vento Act:
- Introduces an “Funding Cap Waiver Authority” for fiscal years 2027 through 2030.
- Recipients may request a waiver of the expenditure limit established under section 415(b) of the Act.
- Waiver requests must include:
- Demonstration of local needs and circumstances justifying the waiver.
- A detailed plan for how the funds will be used.
- A justification linking the proposed use to the most recent Consolidated Plan.
- Any public input solicited for the waiver.
- Notification requirements:
- Recipients must notify subrecipients and local Continuums of Care (CoCs) about the availability of waivers.
- Prior to submitting a waiver request, recipients must solicit public input on the need and proposed use.
- Secretary’s responsibilities and timelines:
- The Department of Housing and Urban Development (HUD) Secretary must publish all waiver requests publicly on HUD’s website.
- HUD must approve or deny a waiver within 60 days of receiving the request.
- Provisions to deny waivers if the recipient relocates or threatens to relocate individuals or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options.
- Waiver validity and revocation:
- Approved waivers remain in effect for the duration of fiscal years 2027–2030 unless the recipient chooses to revoke.
- If a recipient intends to revoke the waiver, they must solicit input from subrecipients about the revocation and provide subrecipients with a summary of input and justification prior to notifying the Secretary in writing.
- HUD must publish the revocation and its justification on its website.
## Who would be affected
- Primary recipients of McKinney-Vento homeless assistance funds who are subject to expenditure limits under section 415(b).
- Subrecipients and local Continuums of Care (CoCs) in the geographic areas served by the recipients.
- HUD, as the federal agency implementing the waiver process and posting information publicly.
- Individuals experiencing homelessness or at risk of homelessness could be indirectly affected by changes in how funds can be allocated if waivers allow different uses of funds.
## Procedural and timeline aspects
- Eligibility window for waivers: fiscal years 2027, 2028, 2029, and 2030.
- Application and review process:
- Waiver requests require several components (needs demonstration, usage plan, Consolidated Plan alignment, public input).
- Public transparency: all waiver requests must be published online by HUD.
- Decision deadline: HUD must act within 60 days of receipt.
- Safety/net protections: waivers can be denied if they would cause relocation of individuals or their property without providing alternative housing options.
- Flexibility vs. oversight:
- The bill creates a formal mechanism to shift or tailor funding usage at the local level while imposing reporting, public input, and publication requirements to preserve accountability.
## Potential impacts and considerations
- Local flexibility to address unique community needs, potentially enabling innovative or expedited responses to homelessness.
- Increased emphasis on community planning, public input, and alignment with Consolidated Plans.
- Enhanced transparency for federal funding decisions through public posting of waiver requests and revocations.
- Risk considerations include ensuring that waivers do not reduce the availability of emergency or permanent housing options for those in need.
Note: This summary reflects the bill text as introduced and does not account for any amendments that may be adopted during the legislative process.
Compiled from official sources — confirm details with the bill’s official record.
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