H.R. 8878 – Incentivizing Local Solutions to Homelessness Act

AI-Generated Summary

Updated May 28, 2026 at 6:51 AM UTC

The bill amends the McKinney‑Vento Homeless Assistance Act to let local homelessness programs ask for a waiver of the usual spending limit for the 2027‑2030 grant years. By creating a formal process for these waivers, the bill aims to give communities more flexibility to address local homelessness needs.

Key Provisions

Adds a new “Funding Cap Waiver Authority” that permits recipients to request a waiver of the expenditure limit for fiscal years 2027‑2030.
Waiver requests must include a description of local needs, a detailed spending plan, justification that it supports the recipient’s latest Consolidated Plan, and any public input gathered.
Recipients must notify all subrecipients and local Continuums of Care about the waiver option and must solicit public input before submitting a request.
The Secretary of HUD must post each request online and decide to approve or deny it within 60 days; waivers that would cause relocation without providing emergency or permanent housing options must be denied.
Approved waivers stay in effect for the grant period unless the recipient chooses to revoke them, which requires subrecipient input and public notice, and the Secretary must publish any revocation.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

May 19, 2026

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HouseIntro Referral

Introduced in House

May 19, 2026

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

May 19, 2026

Bill Text

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Introduced in HouseIssued May 19, 2026

I

119th CONGRESS

2d Session

H. R. 8878

IN THE HOUSE OF REPRESENTATIVES

May 19, 2026

Ms. Garcia of Texas (for herself and Ms. Bynum) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the McKinney-Vento Homeless Assistance Act to incentivize local solutions to homelessness.

1.

Short title

This Act may be cited as the Incentivizing Local Solutions to Homelessness Act.

2.

Incentivizing local solutions to homelessness

Section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373) is amended by adding at the end the following:

(f)

Funding cap waiver authority

(1)

In general

Notwithstanding any other provision of law or regulation, a recipient may request a waiver to the expenditure limit established pursuant to section 415(b) for amounts provided for each of fiscal years 2027 through 2030.

(2)

Waiver request

(A)

In general

A recipient seeking a waiver described in paragraph (1) shall submit to the Secretary a waiver request that includes not more than the following:

(i)

A demonstration of local needs and circumstances that necessitate a waiver.

(ii)

A detailed plan for how the recipient intends to use funds.

(iii)

A justification for how the proposed use of funds supports the most recent Consolidated Plan submitted by the recipient.

(iv)

Any public input solicited under subparagraph (B)(ii).

(B)

Notification

Each recipient shall—

(i)

notify all subrecipients and local Continuums of Care that serve the recipient's geographic area of the availability of waivers under this subsection; and

(ii)

prior to the submission of a waiver request under subparagraph (A), solicit public input regarding the potential need for and proposed uses of such waiver.

(C)

Approval; publication

The Secretary shall—

(i)

make all waiver requests submitted under subparagraph (A) publicly available on the website of the Department of Housing and Urban Development;

(ii)

not later than 60 days after the date on which the Secretary receives a waiver request under subparagraph (A), approve or deny the request; and

(iii)

deny any waiver request submitted under subparagraph (A) by a recipient that relocates or threaten to relocate individuals or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options.

(3)

Revocation

(A)

In general

A waiver approved under this subsection shall remain in effect for the duration of the period of performance of fiscal year 2027 through 2030 grants, unless the recipient notifies the Secretary in writing that the recipient wishes to revoke the waiver.

(B)

Notification

If a recipient intends to revoke a waiver under subparagraph (A), the recipient shall—

(i)

solicit input from subrecipients regarding the revocation before submitting the revocation; and

(ii)

provide subrecipients with a summary of the input and the justification for the revocation in its submittal prior to notifying the Secretary in writing.

(C)

Publication

The Secretary shall publish any revocation of a waiver under subparagraph (A) and the justification of the recipient for the waiver on the website of the Department of Housing and Urban Development.

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