20 states sue Trump over cuts to HUD housing program for homelessness

(CN) — A coalition of 19 attorneys general and two governors sued the Trump administration on Tuesday over new changes to federal housing policy that would place new conditions on and significantly cut funding for permanent supportive housing for people experiencing homelessness.

The coalition, led by New York Attorney General Letitia “Tish” James, seeks a court order blocking the “administration’s cuts and illegal new conditions” on the Department of Housing and Urban Development’s Continuum of Care program funding, which they say threaten billions of dollars in federal funding grants nationwide.

Through the Continuum of Care, HUD distributes billions of dollars each year to state, local and nonprofit entities to provide housing and services to families and individuals facing homelessness, including people with disabilities, seniors, families with children, veterans, LGBTQ+ Americans and others.

Previously, HUD directed approximately 90% of Continuum of Care funding to support permanent housing, but the agency’s new rule — which the states note Congress never authorized — would cut that by two-thirds for grants starting in 2026.

The states argue in their complaint that the Trump administration places new unlawful conditions on access to the funding, including requirements that providers only recognize two genders, mandate residents accept services as a precondition to obtain housing and punish providers in localities that do not enforce strict anti-homeless laws.

“Communities across the country depend on Continuum of Care funds to provide housing and other resources to our most vulnerable neighbors,” James said in a press release. “These funds help keep tens of thousands of people from sleeping on the streets every night. I will not allow this administration to cut off these funds and put vital housing and support services at risk.”

The cuts to HUD’s support would effectively eliminate 12% of the supportive housing stock in New York, the states say in the complaint.

The states claim the changes are unconstitutional because they violate the separation of powers.

“HUD identifies no statute that could plausibly be read to permit it to use billions of dollars in federal funds to force the states to require applicants to certify certain beliefs regarding gender identity, to cap funding for Housing First and permanent supportive housing at 30%, or to require states and local jurisdictions to adopt certain laws targeting the homeless,” the states wrote in their 54-page complaint.

The coalition seeks a judge’s declaration that the Trump administration changes are unconstitutional and requests an injunction reinstating the previous year’s levels of grant funding.

Joining James in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

California Governor Gavin Newsom, who joined the coalition along with California Attorney General Rob Bonta, also excoriated Trump for the cuts to support for established homeless housing programs.

“While Donald Trump is busy hosting parties and showing off his gold-plated decor, Americans are worried about groceries, rent, and basic stability. Most families can’t fall back on inherited wealth or walk away from failure through bankruptcy — but they’re the ones stuck paying for his chaos and incompetence,” the Democrat Trump foe wrote in a statement. “For all Trump’s talk about others feeding at the trough, there’s really only one ‘piggy’ here — and he’ll find it in his own gilded mirror.”

The states argue that, contrary to HUD’s own policies, which encouraged a “Housing First” model that provides stable housing to individuals without preconditions like sobriety or a minimum personal income, the Trump administration’s new grant conditions de-prioritize services to people with mental health issues or substance use disorder and discriminate against localities whose approach to homelessness differs from the administration’s.

The conditions also withhold funds to applicants that acknowledge the existence of trans and gender-diverse people, a population, the states note, that disproportionately experiences homelessness.

The states’ complaint was filed in the federal District of Rhode Island.

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