Trump administration can proceed with homelessness program overhaul, US court rules
The panel said HUD was likely to prevail on appeal, allowing $1.3 billion to be redirected from permanent housing to transitional grants.
- On Wednesday, the Boston-based 1st U.S. Circuit Court of Appeals cleared the way for the Trump administration to proceed with an overhaul of a $4 billion homelessness program by shifting funding away from permanent housing assistance.
- The Department of Housing and Urban Development aims to redirect $1.3 billion toward transitional housing and supportive services, departing from the housing-first model that prioritizes permanent placement without preconditions like sobriety or employment.
- U.S. District Judge Mary McElroy had twice blocked the changes in lawsuits brought by 22 mostly Democratic-led states and advocacy groups, but the appeals panel ruled the administration is likely to succeed in its legal arguments.
- HUD Secretary Scott Turner called the ruling a "win for taxpayers," while the court noted HUD faces a December 1, 2026 deadline to distribute Continuum of Care funds, underscoring the urgency for the stay.
- Advocacy groups, including the National Alliance to End Homelessness, warned the policy could "push 100,000 Americans into homelessness" by defunding permanent solutions; the panel included Democratic appointees U.S. Circuit Judges Lara Montecalvo and Seth Aframe, plus Trump-appointed judge Joshua Dunlap.
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Trump administration gets green light to proceed with homelessness program overhaul
A U.S. appeals court in Boston on Wednesday gave the Trump administration the green light to go forward with a massive overhaul of a homelessness program and its criteria for aid funding. The 1st U.S. Circuit Court of Appeals’ three-judge panel halted a Rhode Island-based federal judge’s ruling in March that the changes to the…
US appeals court allows Trump administration to proceed with homelessness program overhaul
A US federal appeals court on Wednesday allowed the Trump administration to move forward for now with changes to a federal homelessness program, temporarily pausing a lower court ruling that had set aside the new funding plan. The US Court of Appeals for the First Circuit granted the request by the Department of Housing and Urban Development (HUD) to put the lower court’s decision on hold while HUD appeals. The dispute centers on $1.3 billion th…
Trump administration can proceed with homelessness program overhaul, US court rules
A US appeals court cleared the way on Wednesday for President Donald Trump's administration to reshape a $4 billion homelessness program by shifting funding away from permanent housing assistance toward temporary housing and supportive services.
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