Coalition Challenges Latest Efforts to Politicize Homelessness Funding Grants
Jun 22, 2026
Washington, DC - The National Low Income Housing Coalition (NLIHC) has joined a broad coalition of local governments and nonprofit organizations to challenge the Trump-Vance administration’s latest attempt to disrupt federal funding for people trying to exit homelessness. Although the court had previously halted unlawful restrictions on federal homelessness funding, the administration is once again making changes that will kick people out of permanent housing and back onto the streets.
In a supplemental filing today in National Alliance to End Homelessness et al v. Turner et al, the National Alliance to End Homelessness (NAEH), the National Low Income Housing Coalition (NLIHC), Crossroads Rhode Island, Youth Pride, Inc., as well as the County of Santa Clara, Calif., King County, Wash., Boston, Mass., Cambridge, Mass., Nashville, Tenn., and Tucson, Ariz. are asking a court to stop the implementation of the U.S. Department of Housing and Urban Development’s (HUD) notice of funding opportunity (NOFO) for FY 2026 Continuum of Care (CoC) grants – the nation’s more than $4 billion program to support efforts to end homelessness. The new NOFO repeats a series of fatal legal flaws that caused a court to stop the implementation of the 2025 NOFO.
“HUD’s proposed Continuum of Care Program NOFO represents a destructive departure from decades of homelessness policy and will put an estimated 170,000 people into homelessness. These actions will destabilize communities across the country,” said NLIHC President and CEO Renee M. Willis. “CoC funding must prioritize evidence-based housing practices, housing stability, and local decision-making rather than undermine them. The harm to families and individuals who rely on these programs will be irreversible and felt for generations to come. Federal policy should fuel stability—not contradict it.”
Today’s filing continues a saga that has seen nonprofit organizations triumph repeatedly as they have challenged Trump-Vance administration efforts to unlawfully weaponize federal funding. For years and through multiple presidential administrations, the CoC Program has helped provide the necessary resources for local governments and organizations to fund permanent housing projects for veterans, seniors, people with disabilities, and individuals and families with children experiencing homelessness. It has always been HUD’s obligation to release these resources in a timely manner through a lawful CoC Program competition NOFO. However, HUD attempted to radically upend this critical program with a FY 2025 NOFO that threatened to push nearly 200,000 Americans into homelessness. The coalition filing today’s supplemental complaint took legal action to stop the NOFO issued in 2025, and in December 2025, a federal judge granted preliminary relief, which temporarily blocked the administration’s attempts to implement the unlawful and unreasonable restrictions that sought to shift funding away from proven solutions to homelessness. Eventually, Congress stepped in and required HUD to renew all existing grants for FY 2025. HUD still has not finalized those FY 2025 awards that by now are long overdue, leaving projects without funding and further disrupting the nation’s flagship homelessness response program.
The new NOFO release for 2026 bears many similarities to the version the court already determined likely to be unlawful. Without authorization, the FY 2026 NOFO sets aside a whopping $1.3 billion – nearly one-third of available funds – for new projects only, despite Congress’s command that appropriated funds be available to renew existing projects, and despite the fact that this set-aside guarantees that significant numbers of existing projects will be ineligible for renewal, no matter how effective. Worse, this massive set-aside is earmarked principally for unproven strategies, to the detriment of permanent housing that Congress directed HUD to prioritize. The NOFO additionally forces grantees to agree to comply with requirements that have little to nothing to do with the CoC program – including by committing to adhere to executive orders that, among other things, seek to eradicate lawful diversity, equity, and inclusion initiatives; reject transgender and nonbinary individuals’ identities; and coerce jurisdictions to help with federal immigration enforcement.
Plaintiff and co-counsel quotes regarding the original filing are available here.
Read today’s supplemental complaint here.
Democracy Forward and the ACLU Foundation of Rhode Island represent the coalition of nonprofit organizations in the matter; the National Homelessness Law Center represents NAEH and NLIHC; Public Rights Project represents the cities of Boston, Cambridge, King County, Nashville, and Tucson; and Santa Clara County represents itself. The Lawyers’ Committee for Rhode Island represents all plaintiffs.
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