New York Attorney General Letitia James obtained a court order blocking the Department of Housing and Urban Development (HUD) from implementing new restrictions on funding for housing services for people experiencing homelessness. The ruling by the United States District Court for the District of Rhode Island followed a legal challenge led by James, alongside 18 other attorneys general and the governors of Kentucky and Pennsylvania, against policy changes under the Trump administration that affected more than $3 billion designated for the Continuum of Care (CoC) program, according to the Attorney General's office.
Attorney General James stated that Continuum of Care (CoC) funds support tens of thousands of people by providing housing and essential services to vulnerable populations, including families and veterans. In New York, 24 regional CoCs rely on more than $320 million in funding, primarily allocated to permanent housing programs that assist over 13,861 households. The Trump administration had proposed a cap that would have reduced funding for permanent supportive housing by about two-thirds, potentially affecting an estimated 170,000 individuals.
The court’s issuance of a preliminary injunction prevents HUD from implementing new restrictions on funding for organizations serving transgender and nonbinary individuals and those providing support for mental health needs. James and the coalition argued that the proposed requirements were inconsistent with the Administrative Procedure Act and exceeded Congressional authority over federal spending. The ruling maintains existing funding criteria, allowing services for people experiencing homelessness to continue.
Attorney General James was joined in the lawsuit by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, as well as the District of Columbia. The governors of Kentucky and Pennsylvania also supported the effort to challenge HUD’s proposed conditions. The court’s ruling prevents these conditions from being applied to CoC funding while the case continues.
