Court sides with local governments challenging latest efforts to politicize homelessness funding grants

Providence, R.I. — Today, a coalition of local governments and nonprofit organizations won its challenge to the Trump administration’s latest attempt to restrict critical homelessness funding. A federal court set aside the U.S. Department of Housing and Urban Development (HUD)’s 2026 Continuum of Care (CoC) grant notice in its entirety, blocking the agency from weaponizing government funding and sending 97,000 formerly homeless people back onto the streets.

Public Rights Project (PRP) filed this lawsuit on behalf of five local governments and in partnership with Democracy Forward, Santa Clara County and other partners. The coalition had asked the court to stop HUD’s 2026 grant notice for the Continuum of Care (CoC) program – the nation’s more than $4 billion program to support efforts to end homelessness. For years, the program has helped local governments fund permanent housing for veterans, seniors and people with disabilities as well as individuals and families with children experiencing homelessness.

“Cities across the country are relieved that the court preserved critical federal funding for anti-homelessness programs,” said Toby Merrill, litigation director for Public Rights Project. “HUD’s continued attempts to rewrite the rules through an unlawful process would put some of the country’s most vulnerable people at risk. Local governments are standing up to ensure those communities receive the support Congress promised.”

HUD’s 2026 grant notice included many of the same provisions that a court recently blocked in last year’s funding notice. Despite its repeated losses, the agency has continued to try to push through extreme policy positions while ignoring Congress’ program requirements and legally-required procedures. PRP and its partners will continue to work to protect this crucial funding and ensure that HUD follows the law. 

PRP represents the cities and counties of Boston, Cambridge, King County, Nashville and Tucson; Democracy Forward and the ACLU Foundation of Rhode Island represent the nonprofit organizations; the National Homelessness Law Center represents NAEH and NLIHC; Santa Clara County represents itself; and The Lawyers’ Committee for Rhode Island represents all plaintiffs.

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