Local Governments Sue HUD Over Funding Cuts

A new lawsuit alleges that the Trump administration’s revised guidelines for housing and homelessness assistance funds will decimate key programs.

1 minute read

May 6, 2025, 11:25 AM PDT

By Diana Ionescu @aworkoffiction


Nine local governments including San Francisco and King County, Washington are suing the U.S. Department of Housing and Urban Development (HUD) over recent freezes to federal funds that the plaintiffs say will jeopardize homelessness prevention and assistance efforts. 

According to an article in The Mercury News by Grace Hase, the lawsuit “challenges the Trump administration’s orders to end federal grants that promote diversity, equity and inclusion, ‘gender ideology’ and abortion or abet so-called ‘sanctuary’ policies that seek to shield illegal aliens from deportation.’” 

The suit specifically concerns funding for the Continuum of Care program, which provides tens of millions for permanent supportive housing and transitional housing programs. In a press release, Santa Clara County Counsel Tony LoPresti noted, “By conditioning funding, they are continuing to bully local governments into complying with the administration’s political agenda at the expense of effectively helping jurisdictions tackle major local challenges like homelessness.”

Tuesday, May 6, 2025 in The Mercury News

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