Overview
- The First Circuit, which refused a stay on Wednesday, left a Rhode Island judge’s injunction in place and kept existing Continuum of Care grant rules.
- The Continuum of Care program is the largest federal homelessness funding stream, supporting permanent housing and services under a housing-first model.
- HUD’s November overhaul sought to cap permanent housing dollars and add conditions such as work or treatment requirements, law enforcement cooperation and limits on gender recognition.
- A coalition of 20 states, Washington, D.C., cities and nonprofits sued, and the panel said changing course now would be “destabilizing and disastrous” for recipients.
- HUD cited a February spending law to try to lift the block, but the case continues under the Administrative Procedure Act and the administration could still seek higher-court review.