Multistate Coalition Wins Federal Challenge, Keeps HUD From Imposing Restrictions On Continuum Of Care Funding To Prevent Homelessness

A federal court ruled that the U.S. Department of Housing and Urban Development (HUD) cannot impose funding conditions the court found unlawful on local Continuums of Care (CoC) that receive federal funding to prevent homelessness. The lawsuit was filed in November 2025 by 20 states and the District of Columbia challenging changes to a HUD Notice of Funding Opportunity (NOFO) that added new conditions affecting more than $3 billion in CoC funding.

The court issued its decision on June 30, 2026, in the consolidated cases State of Washington et al. v. Department of Housing and Urban Development and National . . .