A U.S. district court judge in Rhode Island ordered the U.S. Department of Housing and Urban Development (HUD) to halt its attempts to change its Continuum of Care (CoC) grant program — the largest resource for federal homelessness assistance funding.
The court order, released Tuesday afternoon, will remain in effect until the court rules on the case. The preliminary injunction forces HUD to pause several recent actions related to the funding, including the 2024-2025 Continuum of Care and Youth Homelessness Demonstration Program Notice of Funding Opportunity (NOFO). The court also stopped HUD from moving forward with the new FY 2025 CoC NOFO and from enforcing new conditions or deadlines tied to that NOFO
U.S. District Judge Mary McElroy had issued a preliminary injunction on Friday, giving a temporary win to the coalition who argued that the administration’s overhaul of the nearly $4 billion homeless program was illegal.
New York Attorney General Letitia James, one of the lead attorneys general among the plaintiffs, said in a press release on Dec. 19 after the initial oral ruling that the CoC program delivers funding to local and regional coalitions that provide housing and services for individuals and families experiencing homelessness, particularly those most vulnerable to homelessness, such as veterans, those with disabilities, and transgender individuals.
“Continuum of Care funds help keep tens of thousands of people in their homes and provide essential services to the most vulnerable, including families and veterans,” she stated. “This administration’s efforts to undermine this vital program are illegal, and today we put a stop to them. I will keep fighting to protect these vital resources that our communities depend on to house those in need.”
NPR reported that when HUD announced its changes in November, it had stated the new policies would “restore accountability” and promote “self-sufficiency” by addressing the “root causes of homelessness, including illicit drugs and mental illness.” It also noted that overall homelessness funding is going up, from $3.6 billion to $3.9 billion.
Washington Attorney General Nick Brown is another of the lead plaintiffs, along with Rhode Island Attorney General Peter Neronha.
“We’re in the middle of a housing crisis and HUD is trying to make it even worse,” Brown stated. “Permanent housing is lifesaving for people trying to gain stability after homelessness. I’m gratified the judge sided with us to protect this vital program.”
The lawsuit says HUD drastically changed its Continuum of Care grant program in violation of congressional intent by sharply reducing funding for permanent housing and putting unlawful conditions on access to the funding. According to the Washington attorney general’s office, HUD is “illegally upending support for people experiencing housing insecurity or homelessness by abruptly rescinding a necessary program notice, replacing it with another that limited access to long-term housing and other services.”
Renee M. Willis, president and CEO of the National Low Income Housing Coalition, called the judge’s ruling “an important step forward for the stability and the integrity of the [CoC] program.”
In a press release, she stated: “While the litigation is ongoing, today’s order puts clear limits on [HUD’s] actions and affirms the urgency of the concerns we raised.”
The lead states are joined in the suit by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Vermont, Wisconsin, and the governors of Kentucky and Pennsylvania.
