A coalition of 20 states, led by Kentucky, has successfully opposed the Trump administration's attempt to restrict federal homelessness funding through the Department of Housing and Urban Development.
Court Intervention Halts Funding Cuts
On December 19, U.S. District Judge Mary McElroy issued an order preventing HUD from enforcing modifications to its grant distribution system. This judicial action effectively reinstates substantial financial support for homelessness programs nationwide.
The controversy stemmed from HUD's November announcement regarding the Continuum of Care program, which allocates federal grants to local governments for housing assistance. The proposed alterations would have imposed a 30% limit on funding for permanent housing initiatives and reduced guaranteed renewals for existing grantees.
These changes would have significantly impacted permanent supportive housing and rapid rehousing programs. For instance, Louisville stood to lose a considerable portion of its $23 million allocation from the 2024 funding cycle.
Governor's Response
"We should be finding ways to solve homelessness, not cause it, and unlawfully holding this congressionally approved funding was a dangerous step that would put thousands of Kentuckians and millions of Americans at risk of losing their home," stated Governor Andy Beshear. "As Governor, it's my job to stand up for our people and I am thankful that today's ruling will protect housing for 700 households and 1,200 Kentuckians."
Following the court's decision, more than $21 million will now be allocated to housing efforts in Kentucky, according to the governor's office.
