US Federal Updates: HUD CoC Funding Changes, Senate Health Bills, DOJ Title VI Rule, CMS 2026 Eligibility

Recent developments in U.S. federal policy affect funding and regulations for key social and health programs impacting older adults. The Department of Housing and Urban Development (HUD) has withdrawn its controversial Fiscal Year 2025 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO), which proposed significant changes including defunding permanent supportive housing (PSH). Despite HUD's withdrawal and plans to release a revised NOFO with technical corrections, ongoing litigation and potential delays threaten continuity of funding, creating risks of service interruptions and housing loss for vulnerable populations reliant on CoC projects. Congressional action is urged to renew existing grants promptly to mitigate funding gaps. In health care policy, the Senate recently voted on two competing bills addressing the imminent expiration of enhanced premium tax credits (ePTCs) under the Affordable Care Act Marketplace. The Lower Health Care Costs Act aimed to extend ePTCs for three years but failed to obtain the 60 votes needed for passage. Conversely, the Health Care Freedom for Patients Act proposed alternative measures such as health savings account funding for low- to moderate-income individuals purchasing high-deductible plans, alongside Medicaid funding cuts and restrictions on covered services. Neither bill advanced, leaving uncertainty regarding the future of ePTCs and Medicaid provisions affecting older adults and low-income individuals. The Department of Justice has enacted a final rule terminating the enforcement of "disparate impact" claims under Title VI of the Civil Rights Act within federally funded programs. This policy shift eliminates federal oversight of policies that unintentionally produce discriminatory effects based on race, color, or national origin, constraining civil rights protections primarily to claims of intentional discrimination. This change could reduce avenues to challenge systemic inequalities in access to federally assisted programs, including those crucial to aging populations. Additionally, the Centers for Medicare and Medicaid Services (CMS) released updated 2026 financial eligibility standards for Supplemental Security Income (SSI), Medicare Savings Programs (MSPs), and Medicare Part D Low-Income Subsidy (LIS) benefits. The adjustments include increased resource and income limits for MSPs and LIS thresholds reflecting cost-of-living considerations. These updates impact eligibility and cost-sharing parameters for critical programs supporting low-income and elderly beneficiaries, influencing financial access to health coverage and essential medications. These evolving policies collectively underscore ongoing challenges in federal funding, regulatory enforcement, and program eligibility that affect the stability and accessibility of housing, health, and social services for older adults and vulnerable populations. Stakeholders in the insurance and health care sectors must monitor legislative developments and regulatory changes closely to anticipate impacts on coverage, compliance, and service delivery.