Incentivizing Local Solutions to Homelessness Act

More local flexibility for homelessness funding

If enacted, the bill would let recipients of McKinney‑Vento homeless assistance funds request a waiver to exceed the usual expenditure limit for amounts provided for fiscal years 2027 through 2030. Waiver requests would have to show local needs and circumstances, include a detailed plan for how funds will be used, justify how the use supports the recipient's most recent Consolidated Plan, and include any public input. Recipients would need to notify subrecipients and local Continuums of Care and solicit public input before applying. The Secretary of Housing and Urban Development would have to post every waiver request on HUD’s website and approve or deny each request within 60 days. HUD must deny any waiver from a recipient that relocates or threatens to relocate people or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options. Approved waivers would remain in effect for the duration of the FY2027–2030 grant period unless the recipient revokes them in writing; revocations would require prior solicitation of subrecipient input and publication of the justification on HUD’s website.