The Prevent Homelessness Act of 2025 establishes a Housing Stabilization Fund within the Department of Housing and Urban Development to provide emergency housing assistance. This fund will issue annual grants to continua of care to support programs for extremely low-income and very low-income families . These families must be unable to meet housing-related obligations due to financial hardship, family crises, unexpected expenses, or unsafe living conditions, and must provide evidence of such inability. Eligible financial assistance covers a wide range of housing-related obligations, including prospective rent and rental arrears, mortgage payments, and utility payments, with certain time limits. The fund also supports housing repairs necessary for habitability, costs for behavioral and mental health services, housing counseling, and legal assistance related to eviction or foreclosure. Additionally, it can provide for security deposits and other short-term costs like groceries or transportation to increase housing stability for eligible families. Grant allocation for fiscal year 2027 will be entirely formula-based, considering factors such as the extent of extremely low-income and severely cost-burdened populations in an area. For subsequent fiscal years, 80% of the funds will be allocated by formula, while 20% will be distributed through a competition. This competitive process encourages targeting assistance to the lowest incomes, leveraging non-Federal funds, and promoting innovative homelessness prevention strategies. The bill authorizes an appropriation of $100,000,000 for the Fund for each of fiscal years 2027 through 2031.