By: Richard L. Smith
New Jersey Attorney General Jennifer Davenport has joined a coalition of states in filing a federal lawsuit challenging the Trump Administration’s latest attempt to impose new conditions on federal homelessness funding, arguing the changes could force thousands of people nationwide out of permanent housing.
The lawsuit targets the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2026 Continuum of Care (CoC) grant program.
According to the lawsuit, HUD’s new funding requirements would significantly reduce support for permanent housing programs that serve people experiencing homelessness.
State officials say the changes come despite a federal court ruling last month that blocked similar conditions HUD attempted to place on fiscal year 2025 funding.
According to Attorney General Davenport, the proposed changes could result in more than 1,300 New Jersey residents losing their housing and returning to the streets.
“For more than two decades, HUD has supported permanent housing programs that help people experiencing homelessness achieve long-term stability,” Davenport said.
“The Trump Administration is attempting to reverse that approach in a way that a federal court has already found unlawful.”
The lawsuit argues that HUD’s new funding conditions effectively place limits on permanent housing programs, threatening housing for an estimated 97,000 people nationwide, according to the National Alliance to End Homelessness.
The coalition contends HUD violated the Administrative Procedure Act by implementing the changes without following the required rulemaking process and is asking the court to declare the new conditions unlawful and prevent them from taking effect.