A Victory for Housing Stability: Court Blocks Potential Cuts to Homelessness Programs
A significant legal victory has been secured for programs dedicated to addressing homelessness across the United States. A federal judge has issued a preliminary injunction, temporarily halting the Trump-VanCe administration’s efforts to significantly reduce funding for established homelessness initiatives. The ruling, issued in the case National Alliance to End Homelessness et al. v. U.S. Department of Housing and Urban Development (HUD), comes at a critical time as winter approaches and hundreds of thousands of individuals and families are at risk of losing their housing.
The legal challenge was brought by a coalition of local governments and non-profit organizations, highlighting the potential devastating consequences of the administration’s proposed policy changes. For over a decade, HUD’s Continuum of Care (CoC) Program has been a vital funding mechanism, providing essential resources for communities to develop and maintain permanent housing solutions for vulnerable populations. This includes veterans, seniors, individuals with disabilities, and families with children experiencing homelessness. However, on November 13, 2025, HUD abruptly rescinded a crucial program notice, replacing it with a new directive that threatened the continuity of these critical services.
The newly issued notice, which was subsequently withdrawn just hours before a court hearing on December 1st, posed a substantial risk to the stability of the CoC program. Judge McElroy’s order effectively prevents the implementation of these potentially harmful changes, at least for the time being. The legal arguments presented in the case emphasized that any disruption to the CoC program could have profound and detrimental effects, potentially leading to hundreds of thousands of people – including children, youth, adults, and families – becoming homeless. The coalition argued that the proposed changes undermined a long-standing, evidence-based approach to addressing homelessness.
The coalition of organizations involved in the lawsuit released a statement expressing relief and reaffirming their commitment to protecting existing solutions. The statement emphasized that the injunction provides much-needed respite for the numerous local governments and non-profit entities working tirelessly to support those experiencing homelessness. It also cautioned that the Trump-VanCe administration may attempt to implement similar policy shifts in the future, and that the legal battle to safeguard these vital programs will continue. The coalition highlighted the substantial number of individuals who rely on this housing support and the importance of maintaining the stability of the CoC program.
The coalition bringing the lawsuit is comprised of prominent national and local organizations dedicated to ending homelessness. In addition to the National Alliance to End Homelessness and the National Low Income Housing Coalition, the coalition includes municipalities such as the County of Santa Clara, California; San Francisco, California; King County, Washington; Boston, Massachusetts; Cambridge, Massachusetts; Nashville, Tennessee; and Tucson, Arizona. This broad coalition underscores the widespread concern about the potential impact of the proposed funding changes.
A diverse team of legal representatives is supporting the coalition's efforts. Democracy Forward and the ACLU Foundation of Rhode Island are representing the non-profit organizations involved. The National Homelessness Law Center is representing the National Alliance to End Homelessness and the National Low Income Housing Coalition. Public Rights Project is representing the cities of Boston, Cambridge, Nashville, and Tucson. Santa Clara County and San Francisco are representing themselves in the matter. The Lawyers’ Committee for Rhode Island is providing legal representation to all plaintiffs in the case.
The outcome of this legal challenge has significant implications for the future of homelessness assistance in the United States. The temporary injunction provides a crucial window of opportunity to prevent disruptions to vital programs and allows for continued efforts to advocate for long-term, sustainable solutions to homelessness. The legal team is preparing for further proceedings, aiming to permanently block the administration’s attempts to undermine the CoC program and protect the vulnerable populations who depend on its resources. This case serves as a powerful reminder of the importance of evidence-based policies and the crucial role of legal challenges in safeguarding essential social safety nets.
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