Attorney General Neronha co-leads lawsuit against Trump Administration for upending long-term housing support for homeless Americans

Attorney General Neronha co-leads lawsuit against Trump Administration for upending long-term housing support for homeless Americans

Published on Tuesday, July 07, 2026

Attorney General Peter F. Neronha today co-led a coalition of 21 attorneys general and two governors in filing a lawsuit against the U.S. Department of Housing and Urban Development (HUD) for unlawfully attempting to cap funding for permanent housing projects. The lawsuit, filed in United States District Court for the District of Rhode Island, argues that the move would result in tens of thousands of people losing their homes.

"The Trump Administration consistently and constantly targets our most vulnerable Americans, and this case is no different," said Attorney General Neronha. "Those experiencing homelessness are in dire need of support, and these unlawful conditions on funding for permanent housing will cause tens of thousands of people to lose their homes. While this Administration will almost certainly continue trying to make life harder for Rhode Islanders and Americans everywhere, we will continue to fight for those who can't fight for themselves."

Just last month, a coalition of states won a separate case against HUD in federal court in Rhode Island regarding the agency's decision last year to impose illegal conditions on billions of dollars in funding for the Continuum of Care (CoC) program, which supports housing and other services for people experiencing housing instability or homelessness. Congress has prioritized stability in the way the funds are allocated, and the vast majority of CoC funds have traditionally supported permanent housing and similarly successful projects.

On June 1, 2026, HUD again sought to implement a cap on funding for permanent housing and assert other unlawful funding conditions. The coalition argues that without court intervention, CoC-funded permanent housing projects will lose funding, resulting in the evictions of tens of thousands of people, with states and local governments left to pick up the pieces.

For more than two decades, HUD has embraced a commitment to permanent housing programs and the Housing First model, which prioritizes rapid placement in permanent housing without requiring people to first meet conditions such as sobriety or a minimum income threshold. But the current federal administration has rejected the Housing First model and undermined the CoC program.

HUD's new notice of funding opportunity sets aside $1.3 billion for new projects prioritizing transitional housing, which results in a de facto cap on permanent housing. The shift threatens housing for at least 97,000 residents of CoC-funded permanent housing across the country according to the National Alliance to End Homelessness.

The states argue that HUD's actions violate the Administrative Procedure Act for failing to proceed with notice-and-comment rulemaking, and for being arbitrary and capricious. They ask the court to declare that the challenged conditions are illegal and block HUD from implementing them.

Joining Attorney General Neronha in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

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