A Rhode Island judge on Friday temporarily blocked the Trump administration from altering the criteria for how tens of millions of dollars in federal funds are used to support homeless populations.
The ruling came after several nonprofits filed suit, accusing the U.S. Department of Housing and Urban Development (HUD) of improperly changing the rules for awarding $75 million under the Continuum of Care Builds program. Plaintiffs argued the administration reshaped the criteria to match its own social policies.
U.S. District Judge Mary McElroy issued a temporary restraining order from the bench while the case proceeds.
“The court’s decision provides significant relief for communities in vulnerable circumstances and for the principle that federal housing funds exist to serve people in need, not to advance partisan goals,” said Democracy Forward President & CEO Skye Perryman. “The administration cannot unlawfully weaponize essential housing resources.”
The coalition behind the lawsuit contends the administration sought to overturn long-standing policies to further political aims, including whether jurisdictions support sanctuary protections, adopt harm reduction practices, or uphold inclusive policies for transgender people.
“We welcome the court’s decision to stop a rushed, lawless attempt to make essential funding contingent on a community’s compliance with harmful and unlawful restrictions the Trump-Vance administration is trying to impose,” the plaintiffs and their counsel said in a joint statement. “This order ensures that service providers can focus on what matters most: providing safe, stable housing and support to people in crisis.”
HUD did not immediately respond to a request for comment.
The National Alliance to End Homelessness and the Women’s Development Corporation, both plaintiffs in the case, argue HUD lacks authority to impose the new standards. They described the revised award process as “shockingly unlawful” and warned it would “irreparably injure qualified applicants for these funds and the communities they serve.”
The lawsuit asks the federal court to rule HUD’s actions unlawful and strike down the new criteria.
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