A Rhode Island federal judge has ordered the U.S. Department of Housing and Urban Development (HUD) to immediately disburse funds under a $75M Homelessness Grant, blocking what advocates claim was an unlawful attempt by the Trump administration to reshape the program with politically charged restrictions.
Court Blocks Funding Freeze
On Sunday, U.S. District Judge Mary S. McElroy granted a temporary restraining order requiring HUD to maintain payments through its Continuum of Care Builds program, designed to help communities create permanent supportive housing. The ruling halts federal officials from withholding funds awarded on Sept. 5 and suspends a statutory lapse until further court orders.
The lawsuit was filed by the National Alliance to End Homelessness and the Women’s Development Corp. (WDC), which accused the administration of hijacking the grant process to punish jurisdictions with policies it opposed.
Politics Versus Housing
Plaintiffs argued the administration’s last-minute changes weaponized homelessness policy for partisan aims. The new rules sought to exclude applicants operating in sanctuary cities or in areas that protect transgender rights, effectively blocking some service providers from funding eligibility.
“We welcome the court’s decision to stop a rushed, lawless attempt to make essential funding contingent on harmful restrictions,” the groups said in a joint statement. “This order ensures providers can focus on housing people in crisis, not politics.”
