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20 States Sue HUD over ‘Chaos’ in Program Supporting Homeless

Washington and 19 other states challenge HUD's new grant rules that would cut permanent housing funding by two-thirds starting in 2026, impacting vulnerable populations.

  • Washington State Attorney General Nick Brown announced Washington joined 20 states suing the Trump Administration over HUD's changes to the Continuum of Care grant program, with the case moving forward in federal court.
  • Following an executive order signed July 24, the U.S. Department of Housing and Urban Development imposed restrictions shifting the Continuum of Care grant program from permanent to transitional housing and tightening conditions for housing providers.
  • Washington typically receives $120 million annually through the Continuum of Care grant program, but new HUD rules would cut permanent housing funding by two-thirds and reduce protections to 30%, complicating multi-year planning.
  • Brown warned the policy shift endangers lives, saying `These unlawful policies will force more than 4,000 Marylanders out of their homes`, while officials say survivors, families and people exiting foster care face crisis.
  • The complaint argues HUD skipped required rulemaking and lacked congressional authorization, and states ask a judge to block a Notice of Funding Opportunity that could cancel thousands of projects.
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Local News Matters broke the news in on Tuesday, November 25, 2025.
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