2025 Federal Policy Wrap Up
Federal action in 2025 brought major developments in education, housing, and child and youth homelessness. This overview highlights where funding stands, key agency changes, legal challenges, and bipartisan legislation to expand access to support.
As the first session of the 119th Congress and the first year of the second Trump Administration come to a close, we summarize below the current status of major federal policies related to children, youth, and families experiencing homelessness.
NOTE: This is SHC’s last federal policy update of 2025. For any major developments that occur between today and the first week of January, stay up-to-date with SHC’s tracking of major updates here.
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Federal Funding
- Congress has made very little progress on finalizing the FY2026 appropriations bills for early care, education, housing, health, labor, and human services. For most federal K12 education programs, FY2026 funding would normally be available on July 1, 2026 for the 2026-2027 school year. The current temporary funding measure (Continuing Resolution) expires on January 30th.
- Given the lack of progress this month and the limited time next month, Congress will need to pass another Continuing Resolution in January to keep the government open – either for a short period of time to allow negotiations to continue, or for the rest of the fiscal year. If Congress fails to pass a Continuing Resolution in January, there will be another government shut-down.
- Both House and Senate FY2026 appropriations bills maintain funding for the McKinney-Vento Act’s Education for Homeless Children and Youth (EHCY) program at the same amount as currently appropriated ($129 million). However, funding levels for other early care and education programs are dramatically lower – or eliminated – in the House bill. Read this article for more information.
U.S. Department of Education Firings and Dismantling
- The Continuing Resolution that was enacted in November reinstated all of the U.S. Department of Education employees who had been fired during the shutdown until at least January 30th, 2025. This includes officials who oversee protections for homeless students and students in foster care.
- The Trump Administration is moving forward with plans to dismantle the U.S. Department of Education by transferring the entire Office of Elementary and Secondary Education (OESE) — which includes the McKinney-Vento Act’s Education for Homeless Children and Youth (EHCY) program and TItle I — to the U.S. Department of Labor (DoL). Under this plan, Office of Postsecondary Education programs also would move to DoL. Read more about the plan here. Learn what the U.S. Department of Education is required to do for homeless children and youth – and why it matters – here.
- Attorneys general from 20 states and the District of Columbia are suing the Trump Administration over both the mass firings and the transfer of federal education programs to other agencies. This EducationWeek article has more information on the litigation, which was amended on November 25.
2025 HUD Continuum of Care Funding
- On Monday, December 8, the U.S. Department of Housing and Urban Development withdrew the recently published 2025 Notice of Funding Opportunity (NOFO) for Continuum of Care (CoC) programs. HUD’s abrupt move happened shortly before a hearing on two lawsuits challenging the NOFO. According to court documents, HUD rescinded the NOFO “to assess the issues raised by Plaintiffs in their suits and to fashion a revised [NOFO].” The next hearing is scheduled for December 19, 2025, at 10 a.m. ET. The judge will consider arguments on plaintiffs’ motion for a preliminary injunction.
- The National Network for Youth has more information on the NOFO’s implications for youth homelessness programs here.
Homeless Children and Youth Act Re-Introduced
On December 3, U.S. Representatives Mike Lawler (R-NY), Janelle Bynum (D-OR), and Delia Ramirez (D-IL) re-introduced the Homeless Children and Youth Act. Earlier this year, U.S. Senators Katie Britt (R-AL) and Angela Alsobrooks (D-MD) re-introduced the Senate version. This legislation would ensure that children, youth, and families experiencing homelessness are not shut out of homeless assistance because they do not meet the U.S. Department of Housing and Urban Development’s (HUD) restrictive definition of homelessness. SchoolHouse Connection strongly supports this legislation, which has been endorsed by over 300 organizations.
- Read more about this bipartisan bill
- Add your organization’s name to the list of co-sponsors
- Urge your U.S. Senators and U.S. Representatives to co-sign
In the video below, U.S. Senators Katie Britt (R-AL) and Angela Alsobrooks (D-MD) talk about the importance of the Homeless Children and Youth Act.
Proud to join @Sen_Alsobrooks to discuss our legislation, the Homeless Children and Youth Act. Our bill would streamline the definition of homelessness across federal agencies, so children and young adults can get the support they need to exit homelessness and achieve their… pic.twitter.com/6yljPf8v3a
— Senator Katie Boyd Britt (@SenKatieBritt) December 3, 2025
Federal Policy Accomplishments in 2025
SHC’s advocacy protected the Education for Homeless Children and Youth (EHCY) program from elimination and ensured $129 million in FY2025 funds were released on time. We identified and prepared over 100 homeless liaisons in strategically important school districts – many of whom had never engaged in advocacy before – to share local data and student stories with Congressional staff, many of whom had never heard of EHCY or even realized that K12 students experience homelessness. By emphasizing basic access to school, student outcomes, efficient use of public funds, and resilience in disasters, we helped policymakers understand that the EHCY program is effective. The result: 1.5 million children and youth experiencing homelessness continue to have access to the safety, stability, and opportunity of public education in the United States.
In a year of rapid-fire policy developments, confusion itself became a barrier to serving students. SHC stepped in as a trusted translator: producing clear policy resources, launching a dedicated federal policy status-updates page, and hosting high-demand webinars that broke down what was proposed, what was enacted, and what it meant for day-to-day work. Educators, state coordinators, and service providers repeatedly told us that SHC was their “rock” in an otherwise dizzying policy landscape, helping them stay focused on student protections rather than rumors or misinformation. Our federal policy communications reached tens of thousands of practitioners with calm, accurate, actionable guidance when it mattered most.
Even while defending core programs, SHC continued to move longer-term policy solutions forward. We helped to advance the Homeless Children and Youth Act (HCYA), which would align HUD’s definition of homelessness with other federal agencies so more families and youth can access housing and shelter. We also continued to build support for the Housing for Homeless Students Act, which amends the Low Income Housing Tax Credit program so that homeless youth don’t have to choose between an education and a place to call home. We laid the groundwork for the re-introduction of the Higher Education Access and Success for Homeless and Foster Youth Act, which creates higher education liaisons for homeless and foster youth and other campus-based supports. And late in 2025, SHC began coordinating the federal policy working group of the Thrive from the Start Campaign to advance federal policy for expectant parents and families with infants and toddlers experiencing homelessness.
We produced a suite of federal policy resources that gave the field clear language, data, and tools for engagement.
- Our 50-state analysis of EHCY funding and state protections showed that, without federal support, most states would not provide even basic McKinney-Vento rights or dedicated resources – evidence that advocates used in meetings, testimony, and media outreach to underscore what was at stake in federal debates. While the report was intended to demonstrate the need to maintain federal protections and funding, it generated inquiries from ten states for guidance on state-level education protections for children and youth experiencing homelessness.
- What the U.S. Department of Education is Required to Do for Homeless Children and Youth – And Why It Matters. This document describes each of ED’s core legal responsibilities and why they matter to children and youth experiencing homelessness. It helped education policymakers and the media about what is at stake in the effort to dismantle the U.S. Department of Education.
- Federal Protections Still in Place. This document provided reassurance to educators about the educational rights and protections for students experiencing homelessness that remain intact and in place, despite federal instability.
- Increasing Educational Opportunity for Homeless Children and Youth. This one-pager succinctly summarizes the need for federal education protections for homeless students and the critical role of the Education for Homeless Children and Youth program.
- The Foundation for Success: How Education Federal Programs Rely on McKinney-Vento. Without the McKinney-Vento Act and its local implementation, students experiencing homelessness are often unable to access the full continuum of learning—from early childhood through postsecondary education. This document outlines how the McKinney-Vento Act serves as the foundation for accessing other key federal education programs.