Overview
- In a Rhode Island court filing, HUD withdrew its new Continuum of Care guidance and said it will issue a revised policy before January application deadlines.
- U.S. District Judge Mary McElroy declined to rule, ordered an explanation by Dec. 15, and questioned the process after the notice was pulled an hour before the hearing.
- The shelved plan capped spending on permanent supportive housing and barred grants for groups focused on transgender communities while steering funding to transitional models with work or treatment conditions.
- States, cities, and nonprofits continue lawsuits alleging the overhaul violated federal law and targeted LGBTQ people, warning that as many as 170,000 people could lose housing.
- HUD says it stands by the fundamental reforms and will reissue the notice with technical corrections, while plaintiffs say funding for some programs begins to dry up in January.