Overview
- HUD told a Rhode Island court it temporarily withdrew its Continuum of Care funding notice to assess legal challenges and said a revised version will come before January timelines.
- The shelved overhaul would have capped permanent supportive housing at roughly 30% of awards, shifted emphasis to transitional programs with conditions, and restricted grants to some LGBTQ-focused providers.
- U.S. District Judge Mary S. McElroy criticized the last‑minute pullback, ordered the government to explain the rescission by Dec. 15, and scheduled a follow‑up hearing for Dec. 19.
- Plaintiffs contend the changes violate the program’s governing law and target disfavored groups, warning the overhaul could jeopardize housing for more than 170,000 people.
- Cities and providers report uncertainty about funding flows and program renewals, citing potential local impacts including projected losses in places such as Maricopa County, San Francisco, New Hampshire and Maine.