A federal judge has struck down conditions the Trump administration placed on 2026 Continuum of Care funding, ordering the U.S. Department of Housing and Urban Development to issue a new funding notice that complies with the law.
The U.S. District Court for the District of Rhode Island vacated the funding notice Friday after New York Attorney General Letitia James and a coalition of states challenged the conditions under the Administrative Procedure Act, according to James' office.
The Continuum of Care program supports housing and services for people experiencing homelessness. James' office said 24 regional organizations in New York receive more than $320 million through the program, with 94% of that money dedicated to permanent housing supporting 13,861 households.
The coalition argued that the 2026 conditions would have limited permanent-housing funding below the amount needed to maintain existing projects. HUD had imposed new conditions after a separate legal challenge involving 2025 funds, according to the attorney general's office.
The case was brought by attorneys general from New York, 19 other states and the District of Columbia, along with the governors of Kentucky and Pennsylvania.
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