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20 States Sue HUD over Changes to Homeless Program Funding

The lawsuit claims HUD unlawfully cut funding for permanent housing, risking 170,000 people facing homelessness, and bypassed required public and congressional approvals.

  • Tuesday, attorneys general and governors from 20 states and Washington, D.C., filed a suit in U.S. District Court in Rhode Island seeking to block this month’s HUD policy cutting permanent housing subsidies.
  • This month, the U.S. Department of Housing and Urban Development announced it would cut rental-subsidy support for permanent housing to 30 percent of Continuum of Care program funds, down from nearly 90 percent.
  • Advocates and plaintiffs say roughly 170,000 people could lose housing, while Continuum of Care programs in Maine support over 1,800 people and local agencies warn 5,000 L.A. County households face risks.
  • The lawsuit argues U.S. Department of Housing and Urban Development violated regulations by skipping rulemaking and congressional approval, imposing ideological limits that could cancel thousands of existing Continuum of Care projects and harm people who are transgender and gender-diverse.
  • Maine Attorney General Aaron Frey warned Tuesday that redirecting funds jeopardizes housing for over 1,200 Mainers, while California Attorney General Rob Bonta and New York Attorney General Letitia James lead the multistate suit amid HUD Secretary Scott Turner's rejection of the `housing first` model.
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Newsmax broke the news in Washington, United States on Tuesday, November 25, 2025.
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