Appeals court rejects federal government’s attempt to gut homelessness funding

For immediate release: April 1, 2026

Media contact: Brittany Miller, brittany@publicrightsproject.org

BOSTON — Today, the First Circuit Court of Appeals blocked the Trump administration’s efforts to implement unlawful restrictions on homelessness funding. The ruling keeps an existing injunction in place so that billions of dollars in funding can continue to flow to housing-first solutions while the case proceeds.

National Alliance to End Homelessness v. HUD focuses on the Continuum of Care (CoC) grant program administered by the U.S. Department of Housing and Urban Development (HUD). It is the main source of federal funding for addressing homelessness with a 2025 budget of $3.9 billion. Local governments use CoC funding to keep people housed through permanent supportive housing, emergency shelter and street outreach as well as to provide services for people with disabilities.

The lawsuit was filed in December after HUD abruptly rewrote the funding rules, upending the program’s stability and putting these crucial services at risk. Public Rights Project sued on behalf of five local governments. Democracy Forward and the National Homelessness Law Center are also representing the plaintiffs in the case.

“Today’s decision prevents the federal administration from shifting resources away from proven, housing-first solutions,” said Jill Habig, founder and CEO of Public Rights Project. “We’re proud to stand with the local governments fighting against unlawful policy changes that would force domestic violence survivors and people with disabilities back on the streets.”

The full coalition of local governments and nonprofit organizations includes the National Alliance to End Homelessness (NAEH), the National Low Income Housing Coalition (NLIHC), Crossroads Rhode Island and Youth Pride, Inc., as well as Santa Clara County, Calif., San Francisco, King County, Wash., Boston, Cambridge, Mass., Nashville, Tenn., and Tucson, Ariz.

The coalition released the following statement in response to the order: 

“As the Trump-Vance administration continues to weaponize federal funding and attempts to hold hostage support for people experiencing homelessness — including families, seniors, veterans and people with disabilities — we are relieved that the appeals court has left the order we earned late last year in place. We will continue to pursue this case and remain dedicated to protecting proven solutions to homelessness and the hundreds of thousands of people who rely on this vital support.”

Public Rights Project represents the cities of Boston, Cambridge, Nashville and Tucson as well as King County. Santa Clara County and San Francisco are also plaintiffs. The Lawyers’ Committee for Rhode Island represents all plaintiffs. Democracy Forward and the ACLU Foundation of Rhode Island represent the coalition of nonprofit organizations in the matter; the National Homelessness Law Center represents NAEH and NLIHC.

Read the court’s order here.