New Jersey Attorney General Matthew J. Platkin has joined a coalition of 20 other plaintiffs in filing a lawsuit against the U.S. Department of Housing and Urban Development (HUD) over recent changes to its Continuum of Care grant program. The lawsuit claims that HUD’s new policies will make it harder for people experiencing homelessness or struggling to find stable housing to access necessary support.
The suit alleges that HUD is violating congressional policy by significantly reducing the amount of grant funds available for permanent housing and project renewals, and by imposing new conditions on funding eligibility. These conditions include requiring residents to accept certain services before they can obtain housing, penalizing providers in areas without strict anti-homeless laws, and withholding funding from organizations unless they adopt specific positions on gender issues—conditions the plaintiffs argue are contrary to previous HUD guidance and congressional intent.
Attorney General Platkin stated, “The Trump Administration is actively engaging in an illegal effort to hamper the work of organizations that battle homelessness in New Jersey and across our country. HUD’s changes to anti-homelessness grants are not only unlawful, they will cause more homelessness by blocking numerous New Jerseyans from getting access to housing, all in the name of political games. We are taking the Trump Administration to court and standing up for New Jerseyans for whom this could mean life or death.”
Historically, HUD has promoted a “Housing First” model, which provides stable housing without preconditions such as sobriety or minimum income requirements. This approach has been credited with improving public health outcomes and reducing costs associated with homelessness.
Under prior rules, about 90% of Continuum of Care funding supported permanent housing projects. The new policy would reduce this figure by two-thirds beginning in 2026. Similarly, while grantees previously relied on nearly guaranteed renewal for about 90% of their funding each year—ensuring stability for individuals and families—HUD’s revised rule lowers this guarantee to just 30%. According to the complaint, these reductions could lead thousands who currently have permanent housing back into homelessness if project funds are not renewed.
The lawsuit also contends that HUD plans to withhold funds from applicants who acknowledge transgender or gender-diverse individuals or prioritize services for people dealing with mental health issues or substance-use disorder differently than prescribed by the administration.
Plaintiffs argue that HUD failed to follow proper rulemaking procedures before implementing these changes and did not seek congressional authorization for them. They claim many aspects directly contradict both existing statutes and prior agency regulations.
The legal action was filed in federal District Court in Rhode Island by attorneys general from several states including Washington (Nick Brown), New York (Letitia James), Rhode Island (Peter Neronha), as well as Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, Oregon, Vermont, Wisconsin; additionally joined by the governors of Kentucky and Pennsylvania.
