What ⁢Happened

On ⁢November 25,‌ 2025, a coalition of 19 attorneys general ⁤and two ‍state ‌governors filed a lawsuit against the‌ Trump administration.They allege that recent changes to funding‍ allocations and⁢ conditions⁤ within ‌the Department of Housing⁢ and ​urban​ Development (HUD) jeopardize housing stability for thousands‌ of‍ formerly homeless individuals and families,perhaps leading to evictions.

The lawsuit, filed in the ​U.S. District ‌Court for Rhode ​Island, centers‌ on new restrictions and funding cuts to the Continuum⁢ of Care (CoC) program announced⁢ by HUD earlier in ‍November. ‌ Plaintiffs ⁢argue these changes disadvantage⁤ services for people experiencing ‍homelessness, notably those with mental disabilities and substance use disorders.

The Core ⁤of the Dispute

The Democratic-led‍ states⁢ contend that the alterations​ to the CoC program⁣ have created “chaos” ⁤and ​that HUD ‍is improperly withholding congressionally ⁤approved‌ funds, effectively‌ holding vulnerable populations “hostage.” the lawsuit specifically challenges ⁢HUD’s new requirements for competitive funding and⁢ its shift away from prioritizing programs aligned with “housing Frist”⁢ policies.

New York Attorney General Letitia James ‍ emphasized the critical role of CoC funds, stating,‌ “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.”

Understanding the ⁤Continuum of⁢ Care ⁤(CoC) Program

Established by‍ Congress in⁢ 1987, the Continuum of Care⁣ program ‍provides funding to states, local governments, and nonprofit ‍organizations to deliver housing and supportive services to individuals ⁢and families experiencing homelessness. The ‍program operates on the principle of coordinated community efforts to address‍ homelessness.

The‌ CoC program is a crucial component of the federal response ‌to homelessness, offering a ‍range of services including emergency shelter, transitional housing, permanent supportive housing, and ​rapid re-housing assistance.

HUD’s Outlook and the⁤ “Housing First” Debate

HUD Secretary ‌Scott Turner has publicly ​criticized​ the CoC program for⁣ prioritizing organizations employing Housing ​First policies. ‍These‍ policies provide housing to ⁢individuals without preconditions like sobriety or a minimum income. Turner argued that this approach contradicts the⁢ department’s goal of funding the‌ most effective ​and innovative programs.

Turner ‌announced changes requiring 70% of projects to be selected through a competitive process. ‍This shift aims to prioritize programs demonstrating measurable ‍outcomes and alignment with ⁣HUD’s priorities. The⁢ administration believes‌ a more ‍competitive ⁣process will lead to more effective use‌ of taxpayer dollars.

Impact and affected Parties

The ‌lawsuit’s outcome will directly affect:

• individuals and families experiencing or at risk of homelessness: The changes could lead to​ reduced access to housing and support services.
• Nonprofit organizations: ⁢ Organizations relying on CoC funding may face financial instability and program ⁣cuts.
• State and⁤ local governments: Jurisdictions that depend on⁢ coc funds to address homelessness will need to adjust their strategies.

Timeline of Events