## States Sue to block trump Administration’s housing Grant changes
Nineteen attorneys general and two governors filed suit in Rhode Island on Tuesday to stop the Trump administration from shifting nearly $4 billion in housing grants, arguing the changes could place as many as 170,000 formerly homeless people back on the streets.
The group, co-led by Rhode Island Attorney General Peter Neronha, accuses the U.S. Department of Housing and Urban Development (HUD) of violating “congressional intent” with its plan to dramatically reduce the amount of grant funds that can be spent on permanent housing,as outlined in its latest Notice of Funding Possibility for Continuum of Care grants.
HUD’s new policy, enacted Nov. 13, shifts Continuum of Care funding toward transitional housing and other short-term interventions. Onyl 30% of the $3.9 billion grant program would be allocated to permanent supportive housing – subsidized, stable residences for formerly homeless individuals, frequently enough those with mental illness or a long history of homelessness.
Previously, approximately 90% of Continuum of Care funding supported permanent supportive units, reflecting a “Housing First” philosophy, according to the 55-page lawsuit.”Addressing the crisis requires urgent action from our communities, institutions, and government,” the lawsuit states. “But instead of investing in programs that help people stay safe and housed, the Trump Administration has embraced policies that risk trapping people in poverty and punishing them for being poor.”
The Continuum of Care grants opportunity is open thru Jan.14, 2026, with grant awards expected May 1.
The new rules also eliminate funding for diversity and inclusion efforts, support for transgender clients, and “harm reduction” strategies aimed at reducing overdose deaths.
“Individually, these conditions are unlawful and harmful,” the lawsuit states. “Together, they are a virtual death blow to the CoC Program as it has operated for decades and will lead to predictably disastrous results.”
Neronha warned that if the policy isn’t blocked, it would “further exacerbate already dire conditions for homeless Rhode Islanders.” Providers in Rhode Island project over 1,000 formerly unhoused people could return to the streets under HUD’s new funding focus.
Housing Coalition Sues HUD Over Changes to Homelessness Funding
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A coalition of organizations providing services to people experiencing homelessness has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD), challenging recent changes to the Continuum of Care (CoC) program. The lawsuit, filed Tuesday, alleges that the changes are arbitrary and threaten the stability of vital services for vulnerable populations.
Background: The Continuum of Care Program
The Continuum of Care program is a HUD initiative designed to organize and deliver housing and services to people experiencing homelessness. It provides funding to local communities to address homelessness through a variety of programs, including emergency shelter, transitional housing, and permanent supportive housing.https://www.hud.gov/program_offices/commplanning/coc
The Lawsuit’s Claims
The lawsuit argues that HUD’s recent modifications to the CoC program are a departure from established policies without adequate clarification. Specifically, the coalition contends that the changes are “arbitrary and capricious” as HUD officials have not provided a rationale for reversing longstanding practices. The suit claims these changes could disrupt the reliable delivery of services to individuals whose lives depend on them.
According to the lawsuit, HUD “has failed to supply any rational explanation for these newly proposed conditions that are entirely unrelated to (and in some cases even inhibit) the statutory purpose of addressing homelessness.”
Concerns Over Program Stability
The organizations involved fear the changes will create instability within the CoC program, hindering their ability to effectively serve those experiencing homelessness. The core argument centers on the idea that the CoC program was designed to provide a stable funding stream, allowing providers to focus on service delivery rather than navigating constantly shifting requirements.
HUD’s response
As of 6:31 pm on November 26, 2025, a statement from the HUD Press Office has been added to reports on the lawsuit. Details of that statement are pending further information.
what’s Next?
The lawsuit seeks to halt the implementation of HUD’s changes until the agency can provide a clear and justifiable explanation for the modifications. The outcome of this legal challenge could significantly impact the funding and operation of homelessness services across the country. The case highlights the ongoing tension between federal policy changes and the needs of local communities working to address the complex issue of homelessness.