On November 25, 2025, Washington Attorney General Nick Brown, New York Attorney General Letitia James, and Rhode Island Attorney General Peter Neronha led a coalition of 19 attorneys general plus the governors of Kentucky and Pennsylvania in filing suit against the Trump administration to protect billions of dollars in grants from the Department of Housing and Urban Development (HUD) that provide housing and other critical services to help fight homelessness.  

For decades, HUD has helped local and regional coalitions plan and coordinate housing and services for people experiencing homelessness through Continuum of Care (CoC) grants, which were created by Congress. Providers pair these grants with other funding sources and rely on the predictability and continuity of the grants to support the unhoused. HUD has a longstanding policy of encouraging what is known as a “Housing First” model that provides stable housing to individuals without requiring preconditions like sobriety or a minimum personal income. These policies are proven to improve housing stability and public health while reducing the costs of homelessness to individuals and their communities. 

In November 2025, the Trump administration imposed new conditions on its CoC grant program in violation of congressional intent by dramatically reducing the amount of grant funds that can be spent on permanent housing and project renewals and putting new conditions on access to the funding. Previously, HUD has directed approximately 90% of CoC funding to support permanent housing, but the agency’s new rule – which Congress never authorized – would cut that by two-thirds for grants starting in 2026. Similarly, HUD has long allowed grantees to protect around 90% of funding year to year – essentially guaranteeing renewal of projects to ensure that individuals and families living in those projects maintain stable housing. But HUD has slashed this figure, too, to only 30%. These new policies virtually guarantee that tens of thousands of formerly homeless people in permanent housing nationwide will eventually be evicted through no fault of their own when the funds are not renewed. The new requirements also include that providers only recognize two genders, mandate residents accept services as a precondition to obtain housing, and punish providers in localities that do not enforce strict anti-homeless laws, all barriers that are counter to HUD’s previous guidance and Congress’ approval. 

The attorney general coalition’s complaint argues that the administration’s new conditions on CoC funding are unlawful and unconstitutional. The administration cannot impose its own conditions on funds that Congress mandated should be distributed based solely on need.

On December 9, 2025, the Trump administration announced on the HUD website that the challenged policies will be withdrawn for now. On December 19, 2025, the court granted a preliminary injunction, blocking HUD from implementing a new policy that HUD had planned to publish immediately that would have cut funding for permanent housing services. The Trump administration dropped its appeal of a court decision upholding the preliminary injunction blocking the funding restrictions on April 20, 2026. 

Congress designed this program in recognition that homelessness is a crisis that requires immediate stabilization and continuing support to reverse. These changes are designed to trap people in poverty and then punish them for being poor. Attorney General Nick Brown

Communities across the country depend on Continuum of Care funds to provide housing and other resources to our most vulnerable neighbors. These funds help keep tens of thousands of people from sleeping on the streets every night. I will not allow this administration to cut off these funds and put vital housing and support services at risk.Attorney General Letitia James

This Administration continues to punch down by targeting the most vulnerable Americans, and unfortunately this most recent attack on homeless individuals is consistent with their modus operandi. The President and his Administration don’t care about making life easier or better for Americans; they only care about political capitulation, consolidating power, and further enriching the wealthy. If allowed, these cuts and conditions would further exacerbate already dire conditions for homeless Rhode Islanders. We will succeed here, as we have nearly every time in the last 10 months, because we are right on the law. And we will continue to fight for all Americans, especially those who can’t fight for themselves.Attorney General Peter Neronha

If the Trump administration’s attempts to cut this funding go through, tens of thousands of formerly homeless people will end up getting evicted from their homes through no fault of their own. Trump’s actions here are as cruel as they are unlawful, so I’m challenging them in court. I will not sit back and allow this administration to throw families out on the street.Attorney General Keith Ellison