States Sue Trump Governance Over changes to Homelessness Funding
A coalition of states has filed a lawsuit challenging recent changes made by teh Trump administration to the Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) program, a key federal funding source for addressing homelessness. The lawsuit alleges the changes will drastically reduce funding for effective housing solutions and disproportionately harm vulnerable populations.
Established by Congress in 1987, the CoC program provides grants to states, local governments, and nonprofits to fund housing and support services for individuals experiencing homelessness. Currently, approximately 90% of CoC awards support projects utilizing a “Housing First” approach, which prioritizes providing housing to individuals without preconditions like sobriety or income.
HUD Secretary Scott Turner has been critical of the Housing First model, arguing it doesn’t address the root causes of homelessness. The administration announced changes to the program,including requiring 70% of projects to be selected through a competitive process. HUD stated that 90% of current CoC awards support projects based on what they deem “failed” Housing First ideologies, claiming this approach “encourages dependence on endless government handouts” and neglects issues like drug use and mental health.
The lawsuit claims these changes will considerably reduce funding for permanent housing, dropping from roughly 90% to just 30% of available CoC funds. Furthermore, the states allege HUD has revised the scoring system for grant awards, disadvantaging programs that address the needs of minority groups, including the LGBTQ+ community, and those providing supportive services for individuals with mental disabilities and substance use disorders.
The new policies also reportedly bar funding for organizations that acknowledge transgender and gender-diverse individuals and penalize service providers that don’t align with the administration’s preferred approaches to homelessness.
California Attorney General Rob Bonta stated the changes woudl “illegally slash” funding for a program proven effective at reducing homelessness and would worsen the crisis.The lawsuit argues the changes threaten housing stability and will negatively impact services for those with mental health and substance use challenges.
The administration’s stated goal is to redefine success in addressing homelessness, focusing on ”long-term self-sufficiency and recovery” rather than simply the amount of money spent or housing units filled.
