The U.S. Department of Housing and Urban Development (HUD), along with the U.S. Department of Transportation (DOT) and the Federal Transit Administration, filed a motion Tuesday urging a federal judge to dismiss a lawsuit brought by eight cities and counties seeking to block the Trump administration’s proposed cuts to homelessness assistance grants.
Citing jurisdictional grounds, HUD argued that the fund-cut suit belongs exclusively in the U.S. Court of Federal Claims. The motion came in response to an emergency request for a temporary restraining order (TRO) filed by municipalities including San Francisco, Boston, New York City, and King County, Washington. The plaintiffs aim to halt what they describe as politically motivated grant conditions tied to local compliance with federal immigration policies and the exclusion of transgender protections.
“The Court lacks jurisdiction over this matter,” HUD stated in its filing. “And plaintiffs cannot meet the extraordinarily high burden required for a mandatory TRO. Therefore, the motion should be denied.”
According to HUD, the case involves contractual disputes over federal funding, which are governed by the Tucker Act and must be resolved in the Court of Federal Claims.
The challenged cuts would affect tens of millions in homelessness and transit grants. King County, for example, cited a potential loss of $67 million in HUD aid supporting services for 17,000 homeless residents, in addition to $446 million in transit-related funds. New York City reported $53 million in at-risk funding, while San Francisco and Boston combined stand to lose approximately $100 million.
Plaintiffs argue the administration is overstepping constitutional boundaries by placing unauthorized conditions on congressionally approved funding. “Defendants usurp Congress’s power of the purse,” the complaint reads.
King County Executive Shannon Braddock said the lawsuit is about protecting essential services and standing up to political coercion. “We are joining other jurisdictions to ensure the administration can’t bully local governments at the expense of our communities,” she said.
San Francisco City Attorney David Chiu called the new grant requirements unconstitutional. “These efforts endanger lives and threaten the city’s ability to care for its most vulnerable,” Chiu stated.
The case, Martin Luther King Jr. County et al. v. Scott Turner et al., is being heard in the U.S. District Court for the Western District of Washington under case number 2:25-cv-00814.
