WA, states defeat HUD effort to kneecap homelessness services

Washington and a multistate coalition have won their case challenging the federal administration's illegal conditions on billions of dollars in funding that community organizations across the country rely on to provide services for families facing housing insecurity or experiencing homelessness.

In November 2025, Attorney General Nick Brown co-led the coalition in suing the U.S. Department of Housing and Urban Development (HUD) to protect more than $3 billion in Continuum of Care (CoC) funds that were jeopardized by illegal new conditions imposed by the federal agency. These funds support vital housing access for those most at risk of homelessness, such as veterans, those with disabilities, and LGBTQ+ individuals. On Monday, the U.S. District Court for the District of Rhode Island granted critical parts of the coalition's motion for summary judgment, ruling that HUD's conditions restricting the funding are unlawful and cannot be implemented.

In Washington, an estimated 5,500 people were at risk for losing their housing due to HUD's sudden changes to CoC funding, according to the National Alliance to End Homelessness.

"This administration's haphazard and cruel approach to housing policy left thousands of Washingtonians at risk of having nowhere to live. Now, thanks to the hard work of our team, they have stability and hope," Brown said. "This victory protects critical services that address our state's housing crisis."

HUD issued a new grant application form in November 2025 containing illegal conditions on CoC grants that threatened funding that coalitions of community organizations receive to provide housing and other support for those experiencing homelessness. The administration imposed a cap on the amount of CoC funds that can support permanent supportive housing. If enacted, this cap would have slashed CoC funds for permanent supportive housing by two-thirds and put an estimated 170,000 people at risk of losing their homes.

Washington receives about $120 million in these grants annually, with most of it going to the five counties with the greatest need for housing services-King, Pierce, Snohomish, Spokane, and Clark counties. The remaining $25 million is distributed by the state to Washington's other 34 counties, which are largely rural.

HUD also imposed other conditions, barring CoC funds from organizations that acknowledge the existence of transgender or nonbinary individuals and excluding programs that provide services for mental disabilities. Brown and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress' constitutional power to control spending.

In a decision on the coalition's motion for summary judgment, the court ruled that the conditions on CoC funding that HUD implemented in its 2025 Notice of Funding Opportunity (NOFO) violate the Administrative Procedure Act and cannot be implemented.

Joining Brown in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

A copy of the court's opinion is available here.

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