Gov. Beshear: Kentucky, States Win Challenge Against Trump’s Dangerous Housing Policy; $21 Million In Funding To Be Restored

Governor joined lawsuit to protect housing for 700 households and 1,200 Kentuckians

FRANKFORT, Ky. (Dec. 23, 2025) - Today, Gov. Andy Beshear announced that a federal judge has ruled in favor of Kentucky, 19 other states and the District of Columbia and demanded that the Trump administration restore federal funding for housing support through the U.S. Department of Housing and Urban Development (HUD). More than $21 million in unlawfully held funds will now be processed for housing efforts in the commonwealth, supporting veterans, seniors, families with children and individuals with disabilities.

"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," said Gov. 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."

In November, the Governor joined the lawsuit, which focused on proposed changes to the Continuum of Care (CoC) program, a federal program that directs funding to keep families with children, seniors, veterans and disabled persons housed. The changes would have put a 30% cap on funding that states can receive for permanent supportive housing projects and would have required states to re-apply for money previously approved by Congress and awarded in 2024. Now, that funding will be processed without the need to re-apply.

Kentucky was at risk of losing 70% of the more than $15 million currently approved that supports permanent supportive housing in 118 of the state's 120 counties. The cap would have also negatively impacted more than $20 million in federal funding for rental assistance and supportive assistance for homeless Kentuckians.

The other states represented in the challenge are Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and Wisconsin, along with the District of Columbia.