James Sues Trump: $3B Homeless Funding at Risk

NEW YORK – Attorney General Letitia James has launched a full-scale legal assault against the Trump administration, alleging a deliberate attempt to sabotage federal funding for programs designed to combat homelessness. The suit, filed today, targets recent policy changes at the Department of Housing and Urban Development (HUD) that threaten over $3 billion in grants allocated to the Continuum of Care (CoC) program.

The crux of the fight centers around the CoC program, a decades-old initiative providing vital housing and support services to individuals and families experiencing homelessness, particularly vulnerable populations like veterans and those with disabilities. James, alongside a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania, argues the Trump administration’s new restrictions illegally target organizations serving the LGBTQ+ community and punish cities and states that don’t align with the administration’s political agenda. The potential fallout? Over 170,000 people at risk of losing already precarious housing.

“Communities across the country depend on Continuum of Care funds to provide housing and other resources to our most vulnerable neighbors,” 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 lawsuit seeks a court order immediately blocking the implementation of these cuts and the imposition of what James’ office calls “illegal new conditions” on the CoC funds.

The CoC program, established in 1987, historically prioritized a “housing first” approach – providing immediate shelter without burdensome requirements. This model, with bipartisan support for decades, has proven effective in stabilizing housing and reducing long-term costs associated with homelessness. However, the Trump administration’s recent policy shift imposes a cap on the amount of CoC funds that can be allocated to permanent supportive housing, effectively dismantling the “housing first” model. Previously, up to 90% of funds supported permanent housing; the new cap limits it to a mere 30%.

Beyond the funding restrictions, the administration has also instituted a controversial ban on funding for organizations that acknowledge the existence of transgender or nonbinary individuals. The lawsuit argues the vague language of this restriction could disqualify any organization that has ever served a transgender or nonbinary person, or even inquired about a participant’s gender identity. This is being characterized as a blatant attempt to weaponize federal funding against a marginalized community.

The stakes are immense. The lawsuit highlights the success of permanent supportive housing in reducing homelessness and lowering associated costs. This model, born during the Reagan administration, has enjoyed consistent support until now. CoC funds also cover crucial support services – childcare, job training, mental health counseling, transportation – all essential for helping individuals rebuild their lives. James and her coalition are demanding a swift resolution, arguing the Trump administration’s actions represent a dangerous and unlawful assault on a vital social safety net. The case is expected to draw intense scrutiny and sets the stage for a protracted legal battle.

RELATED: James Sues Trump: $3B Homeless Funding at Risk

RELATED: James Sues Trump: NY Clean Air Standards Under Attack