A federal judge has ordered the U.S. Department of Housing and Urban Development (HUD) to stop changes to its Continuum of Care grant program, which provides major federal funding for homelessness assistance. The decision comes after a coalition of states, including Vermont, challenged HUD’s modifications in court.
U.S. District Court Judge Mary McElroy issued a preliminary injunction that prevents HUD from moving forward with the proposed changes. The order requires HUD to continue processing applications under previous guidelines.
Attorney General Charity Clark and other state officials filed a lawsuit against HUD in November. They argued that HUD had unlawfully altered support for people experiencing housing insecurity or homelessness by removing an essential program notice and replacing it with one that limited access to long-term housing and related services.
The lawsuit claims that the new conditions imposed by HUD penalized housing providers who recognize gender identity and diversity, required residents to accept additional terms to obtain housing, and punished providers in areas without strict anti-homelessness laws. It also stated that programs addressing mental disabilities and substance use disorder were put at a disadvantage. According to the complaint, these changes contradicted earlier guidance from HUD and lacked congressional approval.
The attorneys general further argued that HUD’s actions were arbitrary because they did not explain the sudden shift away from established policies or address the impact on families and individuals who would lose their homes as a result. They also said HUD missed deadlines set by Congress for changing the program and failed to follow required rulemaking procedures before implementing new rules.
Joining Attorney General Clark in filing the lawsuit are attorneys general from 19 other states, as well as the governors of Kentucky and Pennsylvania.
