James Blocks Trump’s Homeless Funding Cuts

NEW YORK – The Trump administration’s attempt to weaponize federal funding against vulnerable populations hit a wall today, as New York Attorney General Letitia James secured a court order halting the Department of Housing and Urban Development (HUD) from imposing crippling new conditions on the Continuum of Care (CoC) program. The CoC program, which funnels over $3 billion in critical resources to local coalitions, was targeted for sabotage, threatening housing and services for those most in need.

Attorney General James, leading a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania, filed suit in November, alleging the HUD changes were illegal overreach. The lawsuit challenged conditions that would have slashed funding for permanent supportive housing by two-thirds, potentially leaving an estimated 170,000 people at risk of homelessness. The United States District Court for the District of Rhode Island sided with the coalition, granting a preliminary injunction barring HUD from implementing the new rules.

“Continuum of Care funds help keep tens of thousands of people in their homes and provide essential services to the most vulnerable, including families and veterans,” Attorney General James stated bluntly. “This administration’s efforts to undermine this vital program are illegal, and today we put a stop to them. I will keep fighting to protect these vital resources that our communities depend on to house those in need.” The move is being hailed by advocates as a significant victory against a pattern of targeting marginalized groups.

In New York State alone, 24 regional CoCs receive over $320 million annually, with a staggering 94 percent dedicated to permanent housing, supporting 13,861 households. The Trump administration’s proposed cap on funds allocated to permanent supportive housing would have devastated these efforts, effectively dismantling a proven system for addressing chronic homelessness. Beyond the financial cuts, HUD also attempted to dictate who could receive funding, barring organizations that acknowledged transgender or nonbinary individuals and excluding programs serving those with mental disabilities.

The coalition argued, successfully, that these conditions violated the Administrative Procedure Act and encroached upon Congress’ constitutional power over federal spending. The District of Rhode Island’s ruling affirms that principle, sending a clear message that the executive branch cannot unilaterally rewrite laws to advance a discriminatory agenda. The attorneys general joining James in the fight include those from Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, as well as the District of Columbia.

This isn’t just about housing; it’s about a calculated attempt to punish the vulnerable and dismantle a safety net that countless Americans rely on. While the preliminary injunction provides temporary relief, the legal battle is far from over. Attorney General James has vowed to continue fighting to ensure that these critical resources remain available to those who need them most, pushing back against what she calls a blatant attempt to inflict harm on already struggling communities. The court’s decision is a crucial win, but the Grimy Times will remain vigilant as this case unfolds.