The emergency solutions grant (ESG) authorizes the department of housing and urban development (HUD) to make grants to states, units of general-purpose local government, and territories for the…

The Department of Housing and Urban Development's Assistant Secretary for Community Planning and Development awarded the Texas Department of Housing & Community Affairs $10.3 million in Emergency Solutions Grant (ESG) Program (CFDA 14.231) funding effective September 15, 2025, through September 14, 2027. As a formula grant, this award provides Texas with direct federal allocation to address homelessness and housing instability across the state. TDHCA will serve as the pass-through entity, sub-awarding portions of the grant to eligible local governments, nonprofit organizations, and community action agencies throughout Texas to implement core ESG components.

The funding supports five primary service components: street outreach services to engage unsheltered individuals and families; emergency shelter rehabilitation, conversion, and operations; homelessness prevention assistance; rapid re-housing services providing rental assistance and housing stabilization support; and Homeless Management Information System (HMIS) data collection and coordination activities. These services are designed to help vulnerable populations—including extremely low-income individuals, persons with disabilities, elderly residents, families with children, and those experiencing homelessness—quickly regain permanent housing stability and prevent housing crises. Administrative costs supporting program implementation are also eligible. Recipients must maintain detailed records for a minimum of five years and comply with applicable federal regulations under 24 Code of Federal Regulations Part 576.

Activities

ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid RE-housing assistance, and homeless management information system (hmis). Funds can also be used for administrative activities. The five program components and the eligible activities that may be funded under each are set forth in 24 code of federal regulations (CFR) 576.101 through 576.107.

Expected outcomes

With ESG program funding, communities can engage homeless individuals and families living on the street, improve the number and quality of emergency shelters for homeless individuals/families, support the operation of emergency shelters, provide essential services to shelter residents, rapidly work to rehouse homeless individuals and families and prevent individuals and families from becoming homeless.

Intended beneficiaries

Eligible recipients of the ESG funds generally consist of metropolitan cities, urban counties, territories, and states, as defined in 24 CFR 576.2. The minimum eligibility criteria for ESG beneficiaries are as follows: for essential services related to street outreach, beneficiaries must meet the criteria under paragraph (1) (i) of the "homeless" definition under 576.2. For emergency shelter, beneficiaries must meet the "homeless" definition in 24 CFR 576.2. For essential services related to emergency shelter, beneficiaries must be "homeless" and staying in an emergency shelter (which could include a day shelter). For homelessness prevention assistance, beneficiaries must meet the requirements described in 24 CFR 576.103PAR. For rapid RE-housing assistance, beneficiaries must meet requirements described in 24 CFR 576.104. Further eligibility criteria may be established at the local level in accordance with 24 CFR 576.400(e).

Subrecipient activities

The subrecipient activities are unknown at the time of award.