STATES ARGUE NEW RULES COULD CUT SUPPORT FOR SHELTERS,
HOUSING PROGRAMS AND VULNERABLE POPULATIONS
A coalition of 20 states has filed a federal lawsuit challenging the Trump administration’s changes to homeless-services funding,
arguing the revisions unlawfully restrict access to essential aid.
A coalition of twenty U.S. states has sued the Trump administration over recent policy changes affecting federal funding for homeless-services programs. The lawsuit claims the revised rules could significantly reduce resources for shelters, outreach programs, transitional housing and services for vulnerable populations.
According to the complaint, the administration altered funding formulas and eligibility criteria within the Department of Housing and Urban Development (HUD), shifting priority toward short-term interventions and away from long-standing housing-stability programs. States argue the changes violate federal law and could destabilize local efforts to reduce homelessness.
State attorneys general leading the suit say the new rules were implemented without adequate justification or compliance with administrative-procedure requirements. They warn that the policy shift could disproportionately harm families, veterans, youth experiencing homelessness and individuals with disabilities.
The administration has defended the changes, saying they are designed to encourage innovation, increase accountability and target federal dollars toward programs with measurable results. Officials argue that homelessness has risen in several states despite high levels of past funding.
Local service providers, meanwhile, say the revisions create uncertainty for nonprofits that depend on consistent federal support. Some warn they may be forced to scale back operations or turn people away if the funding landscape continues to shift.
The lawsuit asks the court to block the implementation of the new rules and restore previous funding guidelines while the case is litigated. A preliminary hearing is expected in the coming weeks.
