Lawsuit Challenges Trump-Vance Administration’s Withdrawal of Conservation Grants

A federal judge has granted motions for preliminary injunction, which will temporarily block the Trump-Vance administration’s attempts to implement unlawful and unreasonable restrictions that seek to shift funding away from proven solutions to homelessness. The order comes in National Alliance to End Homelessness et al. v. HUD, a case brought by local governments and nonprofit organizations, which seeks to prevent the administration’s harmful attempt to stop funding permanent housing projects that are keeping hundreds of thousands of people out of homelessness as cold winter months arrive.

For years and through multiple administrations, the U.S. Department of Housing and Urban Development (HUD)’s Continuum of Care (CoC) Program has helped provide the necessary resources for local governments and organizations to fund permanent housing projects for veterans, seniors, people with disabilities, and individuals and families with children experiencing homelessness. On November 13, 2025, however, without explanation, HUD rescinded a necessary program notice, replacing it with one that threatens existing services. This move was withdrawn by HUD hours before a hearing in the case brought by local governments and nonprofit organizations. Judge Mary S. McElroy’s order from the bench today, which will be followed by a written order, blocks the implementation of dangerous changes to the CoC program even as the government has threatened to issue another new funding announcement.

The coalition behind the lawsuit includes the City of Cambridge, National Alliance to End Homelessness (NAEH), the National Low Income Housing Coalition (NLIHC), Crossroads Rhode Island, Youth Pride, Inc., as well as the County of Santa Clara, Calif., San Francisco, Calif., King County, Wash., Boston, Mass., Nashville, Tenn., and Tucson, Ariz. 

The coalition released the following statement in response to the order: 

“This order offers local governments and nonprofit organizations doing the hard and important work of supporting people experiencing homelessness some much-needed relief after the threat of harmful new conditions imposed by the Trump-Vance administration. Today’s order means that more than 170,000 people – families, seniors, veterans, and people with disabilities – have respite from the government’s assault. The Trump-Vance administration has suggested it would double-down on its unlawful and unreasonable effort to kick people out of housing and back into homelessness with a new policy shift. We will continue to pursue this case and remain dedicated to protecting proven solutions to homelessness and the hundreds of thousands of people who rely on this housing support.”

After more than a decade of prioritizing evidence-based approaches that reduce homelessness, as the complaint explains, any changes to the Notice of Funding Opportunity threaten to upend the stability of the program required by law, will have devastating impacts for plaintiffs, and cause hundreds of thousands of children, youth, adults, and families to become homeless.

Democracy Forward and the ACLU Foundation of Rhode Island represent the coalition of nonprofit organizations in the matter; the National Homelessness Law Center represents NAEH and NLIHC; Public Rights Project represents the cities of Boston, Cambridge, Nashville and Tucson; and Santa Clara County and San Francisco represent themselves. The Lawyers’ Committee for Rhode Island represents all plaintiffs.