On Monday, the National Alliance to End Homelessness (NAEH), the National Low Income Housing Coalition (NLIHC), and nine other local governments and nonprofits sued HUD in the District Court of Rhode Island after HUD released changes to the Continuum of Care (CoC) Program Notice of Funding Opportunity (NOFO).

In Context

  • We covered the announcement of the NOFO and the redirection of $3.9 billion in Homelessness and CoC funding in our November 19 edition.
  • We also covered in our September 17 edition when U.S. District Judge Mary McElroy in Rhode Island granted a temporary restraining order to block the Trump administration from making these changes.

What They’re Saying:

In the preliminary injunction, plaintiffs state:

“HUD seeks to make this monumental change on a compressed timeline, without congressional authorization, contrary to relevant statutes and regulations, without satisfactory reasoning, by turning away from a decade of prioritizing evidence-based approaches that reduce homelessness, and away from communities, providers and, most importantly, individuals reliant on the housing it will defund…

The significant delays caused by HUD’s last-minute change alone will leave funding gaps that will force programs to shutter or scale back—stripping housing and other critical support from the people who rely on it.”

CEO of NAEH, Ann Oliva said:

“HUD’s 2025 CoC Program Competition NOFO represents a reckless and illegal leap backwards for homeless response in the United States. There is no doubt that it will cause homelessness to rise across this nation. At a time when we should all be focused on scaling up and improving our most effective programs, this administration is instead focused on tearing them down. These sudden decisions will cause programs to be totally defunded or go without federal funds for at least five months, and likely longer. It is stunningly unaccountable administration of this critical grant program.”

Click here to read quotes from other plaintiffs and counsel. Democracy Forward is the lead counsel in the case.