Mosqueda budget amendment aims to protect Continuum of Care amid federal funding cuts to permanent housing programs

November 18, 2025

King County Councilmember Teresa Mosqueda on Tuesday joined her colleagues in approving the 2026-2027 King County budget, including a key amendment to protect the region’s most vulnerable against drastic federal funding cuts to permanent housing programs supporting individuals who are or have transitioned out of homelessness.

The amendment, brought by Mosqueda, sets forth King County’s intent to partner with the City of Seattle and the King County Regional Homelessness Authority on a regional Continuum of Care contingency plan to sustain housing, shelter, and homelessness services affected by federal cuts. Per the amendment, the Executive is requested to transmit an appropriations bill to create a contingency fund for Continuum of Care reductions by March 16, 2026.

“Our strongest defense against these federal cuts and chaos is the strength of our local partnerships and our unwavering commitment to affordable housing,” Mosqueda said. “While the federal restrictions on Continuum of Care funding threaten to undo years of collective work spent building our regional housing and support systems, King County stands united with our partners at the City of Seattle, our state and federal delegations, our local providers, and advocates to protect the progress we’ve made and ensure that we do not lose ground on permanent housing.”

Recently announced federal changes to the Housing and Urban Development (HUD) Continuum of Care funding could push 170,000 people nationwide into homelessness. Seattle and King County currently receive $67 million from this longstanding funding source to house and support about 4,500 residents. The new rules cap spending on permanent housing at 30%, down from more than 92% of current King County grants designated to permanent housing. Without state and local action, housing for families, veterans, people with disabilities, older adults and youth is at serious risk.

And because of delays in the application process for CoC grants, current grants will have expired before new awards are completed, potentially leaving people unhoused as early as the first quarter of 2026.

“Too many of our unhoused neighbors already die on our streets each year,” said King County Councilmember Jorge L. Barón. “The potential loss of these federal funds will cut off thousands more of our residents from the lifesaving shelter and housing they rely on. I have appreciated the weeks of dialogue with city, county, and state leaders that have led to this amendment and look forward to continued collaboration as we chart the path forward together.”

The City of Seattle last week approved roughly $21 million to sustain current CoC programs until more permanent funding is available.

“This federal policy threatens to destabilize our entire housing system and push people back onto the streets,” said Seattle City Councilmember Alexis Mercedes Rinck (Po. 8, Citywide). “I’ve worked in homelessness services — I know what happens when people lose stable housing. We cannot and will not let that happen here. We’ll use every tool we have to keep people housed and safe, because that’s what communities do.”

Mosqueda’s amendment will initiate a fund to cover reductions in federal permanent housing funding, noting a likely gap of at least $36 million in Seattle and King County, and looking at both available new revenues as well as budget reserves and unspent 2025 funds to cover it.

“Thank you to King County Councilmembers for supporting our most vulnerable neighbors. The budget that passed today invests in essential supports to King County residents, and positions our region to better respond to families, elders and people living with disabilities who risk losing their housing or other essential services due to abrupt and shortsighted changes in federal homeless funding priorities,” said state Rep. Nicole Macri, D-Seattle. “Everyone should have the opportunity to live in a stable home, and Councilmember Mosqueda's forward-thinking leadership and close partnership across levels of government helps ensure stability for thousands of formerly homeless people living across our region. I look forward to continued work together as we prepare for the 2026 legislative session.”

“We are grateful to King County Councilmembers for recognizing the imperative to act to defend thousands of King County residents’ homes, safety, and stability early in the new year,” said Alison Eisenger, Executive Director of the Seattle/King County Coalition on Homelessness. “Today’s vote, combined with an initial commitment of $21 million in Seattle’s 2026 budget, show that our elected officials know they must act to defend the fundamentals in our budgets and other actions local governments control. Across this country, federal programs essential to our homes, health care, food, and freedoms are under attack by an administration that rejects facts and embraces cruelty. We will not allow that in our community.”