A coalition of 19 state attorneys general and two state governors filed a lawsuit Nov. 13, seeking to block changes to the U.S. Department of Housing and Urban Development’s $3.9 billion Continuum of Care grant program, according to a Nov. 25 report from Politico.
The lawsuit challenges new conditions that cap funding for permanent supportive housing at 30%, down from 90%, and require grantees to implement transitional housing programs with services requirements. The complaint also alleges the news rules allow HUD to deny funding to organizations that recognize transgender or nonbinary individuals, according to the report.
The department said it stands by the changes, and in a statement from a spokesperson said, “HUD is dismayed that the plaintiffs have chosen to misuse the courts and pursue this delaying tactic to serve their own personal political agenda at the expense of the homeless individuals, youth and families now living on our nation’s streets. Their use of the courts for political means seeks to prevent nearly $4 billion of aid to flow nationwide to assist those in need.”
According to internal HUD documents cited in the lawsuit, the funding changes could put 170,000 people at risk for homelessness, according to the report.
The complaint, filed in Rhode Island federal court, argues the new conditions violate federal law and congressional spending authority. The plaintiffs are led by New York Attorney General Letitia James.
