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Advocates Sue HUD to Preserve $75 Million Homeless Grant

September 30, 2025

The Trump Administration's effort to restrict federal homeless funding to locations complying with sanctuary city policies has prompted a lawsuit from advocacy groups. National Alliance to End Homelessness and Women's Development Corporation sued HUD, arguing that new criteria announced on September 5 with only seven days for revision would make projects in 36 states ineligible for $75 million in Continuum of Care Build grants. A judge has temporarily blocked HUD from disbursing funds while the case continues, with plaintiffs arguing this ensures housing resources remain available without political interference.

Who is affected

  • Homeless service providers in 36 states and the District of Columbia
  • People experiencing homelessness, particularly families with children
  • Black Americans, who make up 32% of homeless despite being only 12% of the population
  • Nearly 150,000 children who experienced homelessness in 2024
  • Potential grantees from states with serious housing challenges including California, DC, Florida, Georgia, Illinois, New York, Texas and Washington state

What action is being taken

  • Judge Mary S. McElroy has issued a September 12 court order temporarily barring HUD from disbursing funds while the case is pending
  • Homeless advocates (National Alliance to End Homelessness and Women's Development Corporation) are pursuing a lawsuit against HUD
  • Democracy Forward is providing legal representation to the homeless activists
  • Plaintiffs are fighting to ensure housing resources remain available to all communities without political interference

Why it matters

  • $75 million in homeless funding for Continuum of Care Build grants is at stake
  • 2024 recorded the highest ever number of people experiencing homelessness at 771,480
  • Families with children saw a 33% increase in homelessness between 2023-2024, adding 32,618 more children
  • More than 99,500 people were counted in unsheltered locations - the highest number recorded since data collection began
  • The approaching September 30 fiscal year end creates urgency in resolving the funding issue
  • The new criteria would primarily impact states with serious housing challenges

What's next

  • No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint

Advocates Sue HUD to Preserve $75 Million Homeless Grant