Court Rejects Latest Push to Politicize Homelessness Grant Funding

Ruling halts attempt to impose unlawful conditions on federal funding for critical services

Providence, R.I.– The National Coalition for Housing Justice (NCHJ) applauds Rhode Island District Court ruling striking down the Trump administration’s unlawful 2026 Notice of Funding Opportunity (NOFO) for the Continuum of Care program, an attempt to weaponize nearly $4 billion in federal funding for vital homeless assistance programs. For the third time, the court has affirmed that federal homelessness funding cannot be administered in ways that destabilize communities, undermine permanent housing, and put tens of thousands of people at risk of returning to homelessness.

The ruling reinforces a core principle of housing justice: federal resources intended to help people secure and remain in permanent housing must be administered lawfully, equitably, and in ways that advance housing stability, not used as a tool to impose ideological agendas or displace people from the homes and services they rely on.  The court’s decision helps protect the integrity of a critical program serving veterans, seniors, youth and young adults, people with disabilities, children, families, and others experiencing homelessness. It’s clear that the Trump administration is using homelessness as a political football to justify increased federal control and attempts to take away people’s rights. This ruling shows us that we can and do stop attacks on marginalized communities when we all work together. 

We commend our NCHJ coalition members for their work on this lawsuit: National Homelessness Law Center, National Alliance to End Homelessness, and the National Low Income Housing Coalition. Democracy Forward and the ACLU Foundation of Rhode Island represent the coalition of nonprofit organizations in the matter; the National Homelessness Law Center represents NAEH and NLIHC; Public Rights Project represents the cities of Boston and Cambridge, King County, Nashville, and Tucson; and Santa Clara County represents itself. The Lawyers’ Committee for Rhode Island represents all plaintiffs. The legal team at Democracy Forward on this matter includes Kristin Bateman, Madeline Gitomer, Christine Coogle, Carrie Flaxman, and Robin Thurston. This ruling reinforces a fundamental principle of housing justice: public resources should expand access to safe, stable housing, not push people back onto the streets.