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20 states sue HUD over ‘chaos’ in program supporting homeless

The lawsuit challenges HUD's policy changes that cap permanent housing funding at 30%, impose new conditions, and risk homelessness for thousands, citing violation of federal law and discrimination.

  • A coalition of 19 attorneys general and two state governors sued the Trump administration over changes to funding allocations and conditions at the Department of Housing and Urban Development that they say threaten thousands of formerly homeless people and families with eviction.
  • The lawsuit alleges new restrictions and funding cuts announced by HUD earlier this month to its Continuum of Care program threaten housing stability and disadvantage services for people experiencing homelessness, including those with mental disabilities and substance use disorders.
  • The complaint alleges HUD violated its own regulations by not engaging in rulemaking before issuing the changes and violated the law by not receiving congressional authorization for the new conditions, many of which the states say are contrary to congressionally passed statutes and HUD regulations.
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Politico broke the news in on Tuesday, November 25, 2025.
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