Overview
- U.S. District Judge Mary S. McElroy granted a preliminary injunction on Dec. 19 that blocks HUD’s proposed Continuum of Care changes and directs the agency to process applications under the prior terms.
- The case was brought by a broad coalition that includes 20 states, the District of Columbia, multiple cities and counties, and national nonprofits such as the National Alliance to End Homelessness and the National Low Income Housing Coalition.
- McElroy said HUD’s actions likely conflicted with the McKinney–Vento framework and criticized the agency’s timing, suggesting the rapid shifts appeared designed to evade judicial review.
- Plaintiffs say the rescinded notice would have sharply reduced support for permanent supportive housing in favor of conditional, transitional models, putting roughly 170,000 people at risk across a $3–$3.9 billion program.
- HUD withdrew a revised funding notice shortly before an earlier hearing and signaled plans to reissue guidance, and the judge said a written order formalizing the injunction is expected early next week.