Trump-Vance Administration Walks Back Dangerous Housing Policy as it Promises More to Come
Dec 10, 2025
Washington, D.C. - On Monday, December 8, 2025, the U.S. Department of Housing and Urban Development was forced to pull back a dangerous new policy hours before a hearing, causing another in a string of examples of government lawyers in court trying to defend the indefensible.
Last week, a broad coalition of local governments and nonprofit organizations took legal action to stop the Trump-Vance administration from creating unlawful and unreasonable restrictions that seek to shift funding away from proven solutions to homelessness, threatening to push hundreds of thousands of people onto the street as cold winter months arrive. On November 13, HUD issued a late-breaking Notice of Funding Opportunity (NOFO) for FY 2025, upending the stability of the program required by law that will have devastating impacts for plaintiffs, and cause hundreds of thousands of children, youth, adults, and families to become homeless.
In advance of a hearing seeking a temporary restraining order this Monday, the Trump-Vance administration withdrew its NOFO, but reserved the right to issue yet another. The broad coalition is continuing to challenge the Trump-Vance administration’s dangerous policies and intentional chaos, which is putting people at risk of becoming homeless, in a preliminary injunction hearing scheduled for next week.
"NLIHC sincerely thanks our partners and recognizes the ongoing efforts of advocates, frontline providers, researchers, Continuum of Care (CoC) leaders, organizers, and individuals with lived expertise nationwide," said NLIHC President and CEO Renee M. Willis. "As we prepare for the next hearing, we remain committed to our network, will stay informed, and will be ready to respond to the next challenge. We will continue collaborating with allies, legal partners, and communities across the country to uphold federal homelessness policy and protect those most in need."
Read the filing here.
Access NLIHC's analysis of the impacts of significant CoC funding reductions here.
Read the full press release from Democracy Forward here.
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