A federal judge ordered the U.S. Department of Housing and Urban Development (HUD) to preliminarily halt changes to its Continuum of Care grant program—the largest resource for federal homelessness assistance funding—after a coalition of states argued in court that the changes were illegal and would leave tens of thousands of people around the country without a place to live.

In her order orally granting a preliminary injunction, U.S. District Court Judge Mary McElroy barred HUD from implementing its proposed changes to the Continuum of Care program and directed HUD to process applications under the terms that existed prior to its unlawful program changes.

A coalition co-led by the attorneys general of Washington, New York, and Rhode Island sued HUD in November for 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. 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.

“We’re in the middle of a housing crisis and HUD is trying to make it even worse. 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.” – AG Brown