Attorney General James Wins Case Protecting Billions of Dollars for States to Fight Homelessness

NEW YORK – New York Attorney General Letitia James and a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania won their case challenging the Trump administration’s illegal conditions on billions of dollars in funding that community organizations across the country rely on to provide housing and services for families experiencing homelessness. In November 2025, Attorney General James led the coalition in suing the Trump administration to protect more than $3 billion in Continuum of Care (CoC) funds that were jeopardized by illegal new conditions imposed by the Department of Housing and Urban Development (HUD). These funds support vital resources for those most at risk of homelessness, such as veterans, those with disabilities, and transgender individuals. The U.S. District Court for the District of Rhode Island granted critical parts of the coalition’s motion for summary judgment, ruling that HUD’s conditions restricting CoC funding are unlawful and cannot be implemented.

“Once again, a court has ruled that this administration cannot put vital resources for our communities at risk just to advance their political agenda,” said Attorney General James. “Continuum of Care funds help provide stable housing for those most at risk of homelessness and keep thousands of New Yorkers in their homes every year. We will keep fighting this administration’s illegal attempts to undermine Continuum of Care funding and jeopardize supportive housing that our communities rely on.”

In November 2025, HUD issued a new grant application form containing illegal conditions on CoC grants that threatened funding that coalitions of community organizations receive to provide housing and other support for those experiencing homelessness. The administration imposed a cap on the amount of CoC funds that can support permanent supportive housing. If enacted, this cap would have slashed CoC funds for permanent supportive housing by two-thirds and put an estimated 170,000 people at risk of losing their homes. In New York, 24 different regional CoC organizations receive over $320 million to provide housing and other services. 94 percent of these funds are dedicated to permanent housing, supporting 13,861 households statewide.

HUD also imposed other conditions, barring CoC funds from organizations that acknowledge the existence of transgender or nonbinary individuals and excluding programs that provide services for mental disabilities. Attorney General James and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress’ constitutional power to control spending. 

In a decision on Attorney General James and the coalition’s motion for summary judgment, the court ruled that the conditions on CoC funding that HUD implemented in its 2025 Notice of Funding Opportunity (NOFO) violate the Administrative Procedure Act and cannot be implemented.

Joining Attorney General James in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.