In a bold move to protect vulnerable populations, Oregon Attorney General Dan Rayfield has initiated a legal brawl with the U.S. Department of Housing and Urban Development (HUD), backed by a coalition of 20 other states. The point of contention: a controversial HUD policy that many fear would upend the lives of those struggling with homelessness or housing insecurity. According to a statement obtained by the Oregon Department of Justice, Rayfield condemns the sudden policy shift, which he deems a direct threat to Oregonians who are finally finding stability in permanent housing.
HUD’s transition plan hits the Continuum of Care grant program, a critical resource that has historically supported the nation’s homeless with housing and services. Rayfield's argument centers on the legality of the changes, accusing HUD of violating congressional intent by slashing the program’s budget for permanent housing and setting new, unapproved conditions for funding access. Despite the agency's drastic alterations, including a write-up that entities must only recognize two genders and that residents accept services prior to housing, HUD has not procured explicit authorization from Congress for such measures.
Practical implications of the policy shift are significant, with Oregon’s Continuum of Care coalitions — which previously received more than $65 million — preparing for a potential 70 percent reduction in funding. According to a news release from the Oregon Department of Justice, the cut could create an estimated $39 million shortfall for Oregon’s housing programs. State and local officials warn that the reduction could lead to widespread community impacts, including the possible displacement of thousands of residents and the weakening of existing support systems.
Oregon Governor Tina Kotek has joined Rayfield in supporting the legal action, publicly opposing the U.S. Department of Housing and Urban Development’s proposed rules. According to the Oregon Department of Justice, Kotek said the state’s rapid rehousing and supportive housing systems have been effective and questioned the need for major changes. These programs, which operate without requirements such as sobriety or fixed income, follow the internationally recognized “Housing First” model.
The dispute has drawn national involvement, with attorneys general from states including Arizona and New York, as well as the District of Columbia, joining the lawsuit. The governors of Kentucky and Pennsylvania have also expressed opposition to the U.S. Department of Housing and Urban Development’s actions. Supporters of the legal challenge say the coalition seeks to maintain existing state and local policies regarding gender identity and preserve the principles on which current support systems are based.
