Nov. 25 (UPI) — A coalition of 19 attorneys general and two state governors sued the Trump administration on Tuesday over changes to funding allocations and conditions at the Department of Housing and Urban Development that they say threaten thousands of formerly homeless people and families with eviction.
The lawsuit, filed in the U.S. District Court for Rhode Island, alleges new restrictions and funding cuts announced by HUD earlier this month to its Continuum of Care program threaten housing stability and disadvantage services for people experiencing homelessness, including those with mental disabilities and substance use disorders.
The Democratic-led states allege that the changes have thrown CoC into “chaos” and that HUD was holding congressionally approved funds and vulnerable people hostage.
“Communities across the country depend on Continuum of Care funds to provide housing and other resources to our most vulnerable neighbors,” New York Attorney General Letitia James said in a statement.
“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.”
Founded by Congress in 1987, the CoC program provides states, local governments and nonprofits with funds to provide housing and support services to those experiencing homelessness.
Earlier this month, HUD Secretary Scott Turner criticized the CoC for prioritizing funds for organizations with Housing First policies, which provide housing to individuals without preconditions, such as sobriety or minimum income.
Turner said the policy ran counter to the department’s objective of selecting the most effective and innovative programs, and it would be instituting changes, including requiring that 70% of projects to be selected through competition.
In a statement, HUD said 90% of CoC awards went to support projects with “failed” Housing First ideologies, which the department said “encourages dependence on endless government handouts while neglecting to address the root causes of homelessness, including illicit drugs and mental health.”
Changes to be implemented are to increase competition for grants, advance public safety, focus on self-sufficiency, encourage personal accountability and crack down on gender ideology, use of taxpayer dollars on undocumented migrants and diversity, equity and inclusion policies.
“Our philosophy for addressing the homelessness crisis will now define success not by dollars spent or housing units filled, but by how many people achieve long-term self-sufficiency and recovery,” Turner said.
In their lawsuit, the states allege that the changes mean only 30% of CoC funds may be used for permanent housing, a drop from roughly 90%.
HUD has also revised the scoring system used to grant awards. According to the lawsuit, the previous system encouraged CoCs to address needs of minority groups, such as the LGBTQ+ community, and the new changes arbitrarily disadvantage programs that provide supportive services for mental disabilities and substance use disorder
The policies also bar funding for applicants that acknowledge the existence of transgender and gender-diverse people and penalize homeless-service providers that pursue approaches to homelessness that do not align with the Trump administration.
In total, the changes will threaten housing stability and disadvantage services for people with mental disabilities and substance use disorder, the lawsuit states.
“This program has proven to be effective at getting Americans off the streets, yet the Trump administration is now attempting to illegally slash its funding,” California Attorney General Rob Bonta said in a statement. “Those caring for our unhoused neighbors need the federal government’s continued support. Absent judicial intervention, the Trump administration’s actions would only worsen the homelessness crisis.”