Chicago – November 25, 2025
On November 25, 2025, a coalition of 20 U.S. states and Washington, D.C., filed a federal lawsuit to block the Trump administration’s recent restrictions on the Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) program. The program provides over $3 billion in grants for permanent housing and essential services to homeless individuals, including veterans, families, and those with disabilities.
The lawsuit argues that the Trump administration’s new rules violate federal law by capping CoC funds for permanent housing at 30%, down from the previous 90%, and imposing conditions that discriminate against LGBTQ individuals. These changes could put an estimated 170,000 people at risk of losing housing. Additionally, the administration barred funding to organizations that recognize transgender or nonbinary individuals and tied fund access to local laws conforming to federal policy priorities.
Plaintiffs contend the administration lacks authority to alter the funding conditions, which Congress mandated be based solely on need, and that the new restrictions violate the Administrative Procedure Act and congressional spending powers. The states seek to restore the funding and block the imposed conditions, emphasizing the critical role of the CoC program in preventing homelessness nationwide.
