James Sues Trump: $3B Homeless Funding at Risk

NEW YORK – Attorney General Letitia James today launched a legal assault against the Trump administration, accusing it of jeopardizing over $3 billion in federal funding earmarked to combat homelessness. The lawsuit, filed with a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania, alleges the administration has imposed new, illegal restrictions on Department of Housing and Urban Development (HUD) grants – restrictions that could push an estimated 170,000 people onto the streets.

The crux of the dispute centers around HUD’s Continuum of Care (CoC) program, a decades-old initiative providing crucial housing and support services to individuals and families experiencing homelessness, with a particular focus on veterans and those with disabilities. James and the coalition claim the Trump administration’s recent policy shifts illegally target organizations serving the LGBTQ+ community and punish those that don’t align with the administration’s ideological preferences. The legal action seeks a court order to immediately block these cuts and unlawful conditions attached to the CoC funds.

“Communities across the country depend on Continuum of Care funds to provide housing and other resources to our most vulnerable neighbors,” Attorney General James stated bluntly. “These funds help keep tens of thousands of people from sleeping on the streets every night. I will not allow this administration to cut off these funds and put vital housing and support services at risk.” The CoC program, established in 1987, historically prioritized a “housing first” approach, providing immediate shelter without imposing burdensome requirements.

For years, permanent supportive housing – a model with bipartisan support dating back to the Reagan administration – was HUD’s preferred method for addressing homelessness, proving effective in increasing housing stability and lowering overall costs. However, the Trump administration’s new policy threatens to dismantle this system. The administration has imposed a cap on the amount of CoC funds that can be allocated to permanent housing, slashing it from a potential 90 percent to a mere 30 percent. This drastic reduction, if enforced, is projected to leave 170,000 people at risk of losing their homes.

But the restrictions don’t stop there. The lawsuit further alleges the administration has barred CoC funds from reaching organizations that acknowledge the existence of transgender or nonbinary individuals. The vague wording of this restriction, James argues, could disqualify any organization that has ever served a transgender or nonbinary person, or even inquired about a participant’s gender identity. This represents a blatant attempt to weaponize federal funding to enforce a discriminatory agenda, the lawsuit contends.

The legal challenge represents a significant escalation in the ongoing battle between state attorneys general and the Trump administration over a range of policy issues. James and her fellow plaintiffs are demanding the court strike down the illegal restrictions and restore full funding to the CoC program, ensuring that vital resources continue to reach those most in need. The case is expected to draw intense scrutiny and could have far-reaching implications for the future of homelessness services nationwide.