Judge halts 'hasty' HUD changes to homelessness grants

Service providers said the sudden changes would have imperiled thousands of Americans and forced more people into homelessness.

1 minute read

July 5, 2026, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Close-up on sign on headquarters building for HUD in Washington DC.

HUD headquarters in Washington DC. | CHRISTOPHER E ZIMMER / Shutterstock

A United States District Court judge ruled against the Trump administration's proposed changes to the Continuum of Care grants, which fund homelessness services around the country.

According to an article in Smart Cities Dive by Ryan Kushner, a notice of funding opportunity issued by the Department of Housing and Urban Development in November sought to de-emphasize the "housing first" approach to homelessness reduction and added new requirements. 

According to Kushner, "In a striking rebuke, District Judge Mary McElroy wrote that HUD’s actions 'to hastily eliminate its Housing First approach serve as the hallmark of unreasoned decision making,' and that the agency created a 'procedural nightmare' for localities in violation of the Administrative Procedure Act, while also failing to duly consider the harm its 'rapid, untimely overhaul' might cause." 

The judge's decision does not preclude the agency from making similar changes in the future.

Thursday, July 2, 2026 in Smart Cities Dive

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