Federal Judge Strikes Down Trump Administration's 2026 Homelessness Funding Over Procedural Violations

A U.S. District Judge ruled that the Department of Housing and Urban Development (HUD) violated the Administrative Procedure Act by failing to conduct a public notice-and-comment process before shifting billions in federal homelessness funding away from permanent housing programs. The ruling sets aside HUD's fiscal year 2026 Continuum of Care funding announcement, which sought to prioritize temporary housing and condition housing on beneficiaries meeting certain criteria, a departure from the Housing First model.