New York Attorney General Letitia James achieved a significant legal victory by obtaining a court order that halts the Department of Housing and Urban Development’s (HUD) new restrictions on funding for housing services aimed at individuals experiencing homelessness. This ruling, issued by the United States District Court for the District of Rhode Island, follows a legal challenge initiated by James and a coalition of 18 other attorneys general, along with the governors of Kentucky and Pennsylvania.
The lawsuit directly contests policy changes enacted during the Trump administration that threatened over $3 billion allocated to the Continuum of Care (CoC) program. According to the Attorney General’s office, these funds are crucial for providing housing and essential services to vulnerable populations, including families and veterans. In New York alone, 24 regional CoCs depend on more than $320 million in funding, which supports permanent housing initiatives for over 13,861 households.
Proposed changes by the Trump administration included a cap that would have reduced funding for permanent supportive housing by approximately two-thirds, potentially jeopardizing assistance for an estimated 170,000 individuals. The court’s issuance of a preliminary injunction effectively prevents HUD from enforcing these new funding restrictions, which would have disproportionately impacted organizations serving transgender and nonbinary individuals, as well as those addressing mental health needs.
James emphasized the importance of maintaining existing funding criteria, stating, “These funds support tens of thousands of people by providing essential services.” The ruling allows critical services for individuals experiencing homelessness to continue uninterrupted while the case proceeds through the court system.
Coalition of Supporters
The legal challenge saw strong backing from a diverse coalition, including the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. Additionally, the governors of Kentucky and Pennsylvania played supportive roles in contesting HUD’s proposed conditions.
According to the court’s findings, the coalition successfully argued that the new requirements were inconsistent with the Administrative Procedure Act and exceeded the authority granted by Congress over federal spending. This judicial ruling ensures that current funding frameworks remain intact, safeguarding vital programs for the homeless population.
As the case unfolds, the implications of the ruling could significantly impact the landscape of homeless services across the United States. The ongoing legal battle underscores the critical nature of funding for housing and support services that cater to the most vulnerable members of society. With this court order, Letitia James and her colleagues have taken a decisive step in protecting essential services that are at risk due to shifting federal policies.
