In a decisive move, a federal court has issued a Temporary Restraining Order against the Trump Administration's attempt to enforce new, unauthorized conditions on federal grants provided by the Department of Housing and Urban Development (HUD). According to the San Francisco City Attorney's Office, these conditions sought to align the receipt of critical HUD funds with the administration's anti-immigrant, anti-LGBTQ+, anti-choice, and anti-equity stances.
The San Francisco City Attorney, David Chiu, expressed relief and determination, stating, "HUD's Continuum of Care grant program provides tens of millions in funding for housing and related services for thousands of our most vulnerable." The HUD CoC grants are instrumental for San Francisco, contributing over $50 million each year to support efforts in combating homelessness. With the latest ruling, for now, the city and other plaintiffs in the coalition can breathe easier knowing that the threat to their funding has been temporarily lifted, as per the San Francisco City Attorney's Office.
HUD introduced the contentious conditions in March 2025, when it issued grant agreements that included the new, legally questionable stipulations not approved by Congress. This triggered a lawsuit by San Francisco and a coalition of seven other local governments, arguing that these conditions violated constitutional statutes and the Administrative Procedure Act.
The CoC program, a lifeline for many, supports transitional and permanent housing projects and plays a crucial role in rental assistance and connecting individuals at risk with the services they need. Had these conditions been enforced, they could have jeopardized the welfare of over 8,323 homeless residents in San Francisco alone, potentially leading to more than 1,400 households losing their housing subsidies and services, as per the statement from San Francisco's Department of Homelessness and Supportive Housing.
U.S. District Court Judge Barbara J. Rothstein ruled in favor of the plaintiffs, concluding that the public interest lies with preventing the enactment of these conditions. The order, as highlighted by Judge Rothstein, mentioned, per the San Francisco City Attorney's Office, "Plaintiffs have shown a likelihood that each of the conditions at issue violates the Separation of Powers doctrine by imposing on Plaintiffs certain conditions that Congress did not approve." The coalition of plaintiffs includes diverse jurisdictions such as Martin Luther King, Jr. County, Washington; City of New York; and City of Boston, among others, unified in their stance against the illegal grant conditions.
