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Judge blocks HUD move to change funding for homelessness programs

The ruling blocks a new HUD notice that would have shifted about $1.3 billion toward temporary housing and services.

  • On Friday, U.S. District Judge Mary McElroy blocked the Department of Housing and Urban Development from overhauling the $4 billion Continuum of Care program, ruling the agency acted in a "procedurally invalid manner."
  • HUD Secretary Scott Turner sought to shift funds away from permanent "Housing First" models toward temporary shelters requiring sobriety or treatment, claiming the existing system fueled a "homelessness crisis."
  • The ruling halts distribution for 450 CoC programs, leaving billions in funding in limbo while advocates estimate the scrapped overhaul could have jeopardized housing assistance for roughly 170,000 vulnerable individuals.
  • Washington Attorney General Nick Brown and 21 other states filed the lawsuit, marking the third time this year federal judges have invalidated the agency's attempts to bypass standard public comment processes.
  • Local organizations like UNITY now await federal guidance to determine how to proceed with grant applications while managing services without the anticipated funding distribution rules in place.
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UPI broke the news in Washington, United States on Friday, August 7, 2026.
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