Washington Attorney General Nick Brown and a coalition of states have filed a lawsuit against HUD over changes to the Continuum of Care grant program, arguing that the new rules could increase homelessness by limiting long-term housing support and services. The lawsuit claims U.S. Department of Housing and Urban Development’s restructuring cuts funding for permanent housing and project renewals, while imposing conditions such as recognition of only two genders and mandatory service participation, according to the Office of the Attorney General.
“These changes are designed to trap people in poverty and then punish them for being poor,” Brown stated, expressing concerns over the policy’s impact on vulnerable populations. Critics say the overhaul deviates from previous HUD guidance that allowed stable housing without preconditions, putting many formerly housed individuals at risk of eviction due to reduced funding, as reported by the Office of the Attorney General.
U.S. Department of Housing and Urban Development’s policy revision affects about $120 million in annual housing grants in Washington, impacting both urban and rural areas. An Opportunity Council client in Bellingham said, "When you become unhoused, survival takes over. Routines, organization, even your sense of who you are, gets pushed aside." Yakima County’s permanent housing programs are also affected, with Rhonda Hauff, president and CEO of Yakima Neighborhood Health Services, saying, "HUD’s change in priorities destabilizes our entire housing system." States including New York and Rhode Island have filed a federal complaint, saying HUD made changes without proper rulemaking or congressional approval, affecting protections for the LGBTQ+ community and mental health programs, as stated by the Office of the Attorney General.
