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Appeals Court Rejects HUD Request to Temporarily Allow Changes to Housing-Assistance Programs

The ruling preserves a preliminary injunction after states said HUD’s changes would destabilize housing for tens of thousands of formerly homeless people.

  • On Wednesday, the 1st Circuit U.S. Court of Appeals rejected the Department of Housing and Urban Development's request to implement restrictions on the Continuum of Care program, keeping a preliminary injunction in place.
  • A coalition of 20 states, led by Washington Attorney General Nick Brown and Maine Attorney General Aaron Frey, sued the agency last year after the administration planned to redirect funding away from permanent housing.
  • Lawyers noted that if the administration had prevailed, more than $2 billion in grant funding supporting 4,000 local housing coalitions could have faced new rules, sparing almost 200,000 people from displacement.
  • Circuit Judge Julie Rikelman wrote that a stay would be "destabilizing and disastrous," while HUD Secretary Scott Turner maintains the current "Housing First" approach ignores solutions and promotes self-sufficiency.
  • The federal appeals court warned that dissolving the injunction would result in severe consequences difficult to reverse as litigation plays out, noting a final judgment would offer little solace to residents forced into homelessness during the interim.
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Newsmax broke the news in Washington, United States on Wednesday, April 1, 2026.
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