United States — State attorneys general and governors filed a multi‑state lawsuit this week challenging recent HUD changes that would reallocate Continuum of Care funding, cap permanent supportive housing allocations, and require reapplications for awards. Plaintiffs say the administrative actions risk thousands of households losing assistance and contend the rules conflict with federal law and past Congressional funding decisions. Kentucky, Michigan, Arizona, Wisconsin, Washington and other states provided estimates of households and dollars at risk and pledged legal action to block implementation while courts review the agency’s authority. Based on 6 articles reviewed and supporting research.
Temporary housing programs and providers receiving redirected HUD funds may gain increased short-term resources and expanded temporary-assistance capacity under the policy changes.
Low-income families, veterans, seniors, and people relying on permanent supportive housing face potential loss of assistance, increased housing instability, and elevated homelessness risk if funding shifts proceed.
Federal HUD rule changes reallocate Continuum of Care funding from permanent supportive housing toward temporary assistance and impose application and cap requirements. Multiple states, led by state attorneys general and governors, allege administrative overreach and filed suit this week; plaintiffs cite projected loss of funding and increased homelessness risk nationally.
Changes to HUD policies spark Mayes' 31st federal lawsuit
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