Attorney General Neronha, coalition secure order protecting federal support for homelessness services

Published on Friday, August 07, 2026

Attorney General Peter F. Neronha today issued the following statement after U.S. District Court Judge Mary S. McElroy granted summary judgment in a lawsuit which unlawfully attempted to cap funding for permanent housing projects.

"While the Trump Administration remains committed to making life harder for our most vulnerable Americans, our coalition remains committed to holding the Trump Administration accountable," said Attorney General Neronha. "Those experiencing homelessness are in dire need of support, and slashing funding for permanent housing would have caused tens of thousands of people to lose their homes. We will continue to check this Administration's overreach and to fight for all Americans, especially those who can't fight for themselves."

On July 7, 2026, Attorney General Neronha co-led a coalition of 21 attorneys general and two governors in filing the lawsuit against the U.S. Department of Housing and Urban Development (HUD) arguing that the move would result in tens of thousands of people losing their homes.

On June 1, 2026, HUD sought to implement a cap on funding for permanent housing via a new notice of funding opportunity (NOFO) which set aside $1.3 billion for new projects prioritizing transitional housing, which would have resulted in a de facto cap on permanent housing. In its lawsuit, the coalition argued that CoC-funded permanent housing projects would lose funding, resulting in the evictions of tens of thousands of people, with states and local governments left to pick up the pieces.

In her decision, Judge McElroy determined that HUD violated the McKinney-Vento Act 's requirement that it engage in notice and comment rulemaking before creating new incentives for anything other than permanent housing projects, and that a $1.3 billion set aside for new projects prioritizing transitional housing is such an incentive. She then vacated the NOFO in its entirety.

In June 2026, a coalition of states won a separate case against HUD in federal court in Rhode Island regarding the agency's decision last year to impose illegal conditions on billions of dollars in funding for the Continuum of Care (CoC) program, which supports housing and other services for people experiencing housing instability or homelessness. Congress has prioritized stability in the way the funds are allocated, and the vast majority of CoC funds have traditionally supported permanent housing and similarly successful projects.

Joining Attorney General Neronha in filing the lawsuit were the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

###