Local Solutions to End Homelessness Act of 2023

This bill amends the McKinney-Vento Homeless Assistance Act to ensure that metropolitan cities and urban counties receiving very small emergency homelessness grants (less than 0.05% of annual funding) get their allocated funds reallocated to the state or a larger local government unit that can effectively use them. Specifically, if a city would receive less than the minimum threshold, its funds are redirected to the county where it’s located (if that county previously managed such grants and agrees), or directly to the county itself. The change prevents tiny, unusable allocations from being wasted while maintaining existing grant administration structures. It directly affects local governments that would otherwise receive minimal federal homelessness funding under current rules.