States Sue Trump Administration Over HUD Homelessness Funds

Almost half of the states in the country are going after President Donald Trump’s administration for changes to a critical program that provides funds to combat homelessness.

A coalition of 20 states led by New York Attorney General Letitia James sued the administration on Tuesday, Politico reported. The group is requesting a court order to stop cuts and conditions attached to the Department of Housing and Urban Development’s Continuum of Care program.

The program provides funding to local organizations for permanent housing assistance to those who are homeless. Policy changes for the coming fiscal year, however, will shift more than half of the funding towards temporary housing assistance with work and service requirements.

The policy changes would also mean HUD would have the power to deny funding for organizations that acknowledge transgender and nonbinary individuals’ existence.

“I will not allow this administration to cut off these funds and put vital housing and support services at risk,” James said in a statement. The coalition claims the conditions are “unlawful and unconstitutional,” in violation of a power bestowed upon Congress.

“HUD stands by its FY2025 Continuum of Care reforms,” an agency spokesperson said. The funding cuts endanger the housing of 170,000 people, according to internal agency documents.

HUD recently imposed a cap on the amount of program funds that can support permanent housing. There used to not be a specific limit, prompting around 90 percent of funds to support permanent housing; no more than 30 percent of these funds can aid permanent housing under the cap.

The states’ lawsuit echoes similar litigation filed by two homeless service providers in September. The National Alliance to End Homelessness and the Women’s Development Corporation of Rhode Island argued in the suit that HUD unlawfully conditioned access to lifesaving housing money on unrelated political issues, tying funds to the Trump agenda.

The plaintiffs also said the agency revoked awards that had already been announced.

That case could determine the fate of $75 million in expiring grants, as well as whether HUD dollars can be contingent on states falling in line with Trump’s social policies.

— Holden Walter-Warner