From DC: HUD Cuts to Supportive Housing, Medicare Savings Gaps, and more

June 12, 2026

From DC is Justice in Aging's weekly roundup of national news and resources about issues impacting older adults. To receive From DC in your inbox as soon as its published, sign up for our mailing list.

Here’s what we’re watching in Washington:

HUD Continues Push to Cut Funding for Permanent Supportive Housing

The Department of Housing and Urban Development (HUD) recently released its Fiscal Year 2026 Notice of Funding Opportunity (NOFO) for the Continuum of Care (CoC) program, which funds permanent supportive housing (PSH) for people experiencing homelessness. Last year, HUD proposed drastic cuts to PSH in 2026 and a radical overhaul of the CoC program. Advocates successfully pushed back on that proposal.

The latest CoC NOFO, however, confirms that HUD is still seeking to shift funding away from PSH towards temporary and less effective forms of assistance, such as transitional housing. At least 97,000 PSH residents – the vast majority of whom are older adults and people with disabilities – are at risk of losing their housing next year under HUD’s new CoC NOFO.

Justice in Aging will keep our network informed about advocacy opportunities to protect PSH for older adults and people with disabilities.

Report Shows Many Older Adults Missing Out on Help with Medicare Costs

Medicare can be expensive, especially for people with limited income. According to KFF, one in four Medicare enrollees (16.5 million people) had incomes below $24,600 in 2024, and one in three Medicare enrollees reported delaying care due to cost.

Medicare Savings Programs (MSPs) can help with Medicare costs, but complex eligibility and enrollment rules mean many people eligible for an MSP are not enrolled. A new Urban Institute report finds that MSP enrollment has likely improved in recent years, but about four in ten eligible individuals still remain unenrolled. The data shows that participation rates improve when eligibility and enrollment policies are simplified.

Unfortunately, the Budget Reconciliation Act of 2025 (H.R. 1) paused enforcement of new requirements for states to streamline eligibility and enrollment in MSPs. However, as our Justice in Aging issue brief explains, states can still implement most of these changes. The Aging & Disability Policy Lab has also developed model policies that states can implement to further expand and simplify access to MSPs. The Lab is collecting feedback on these proposed policies through July 10th.