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20 states sue HUD over ‘chaos’ in program supporting homeless

The lawsuit argues that HUD’s policy changes unlawfully reduce permanent housing funding from 90% to 30%, risking homelessness for up to 170,000 people, states say.

  • On Tuesday, Nov. 25, 20 mostly Democratic-led states and Washington, D.C. sued in Rhode Island federal court to block HUD from imposing new restrictions on more than $3 billion in Continuum of Care grants.
  • On Nov. 13, HUD Secretary Scott Turner announced a Notice of Funding Opportunity for the $3.9 billion Continuum of Care program capping permanent housing at 30%, favoring treatment-first grants, and barring funds for diversity or 'gender ideology' efforts.
  • National estimates show the states say changes could cause more than 170,000 people to lose housing, with 5,000 L.A. County households and Asheville-Buncombe Continuum of Care funding cut to $568,000.
  • The plaintiffs ask the U.S. District Court in Rhode Island to block HUD's NoFO, citing failure to provide proper notice and the risk of aid ending as soon as January.
  • The long-standing Housing First model within the Continuum of Care program has decreased homelessness by 88, while changes would shift billions nationally and more than a million locally away from it.
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Politico broke the news in on Tuesday, November 25, 2025.
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