Wisconsin Department of Justice and Coalition Win Case Protecting Billions of Dollars for States to Fight Homelessness
Court Decision Prevents Trump Administration’s Illegal Conditions from Jeopardizing Funding for Continuum of Care Programs
MADISON, Wis. – The Wisconsin Department of Justice (DOJ) and a coalition of 18 attorneys general and the governors of Kentucky and Pennsylvania won their case challenging the Trump administration’s illegal conditions on billions of dollars in funding that community organizations across the country rely on to provide housing and services for families experiencing homelessness. In November 2025, Wisconsin DOJ joined the coalition in suing the Trump administration to protect more than $3 billion in Continuum of Care (CoC) funds jeopardized by illegal new Department of Housing and Urban Development (HUD) conditions. These funds support vital resources for those most at risk of homelessness, such as veterans, disabled, and transgender individuals. The U.S. District Court for the District of Rhode Island granted critical parts of the coalition’s motion for summary judgment, ruling that HUD’s conditions restricting CoC funding are unlawful and cannot be implemented.
“The senseless changes that the Trump administration tried to impose would have undermined communities’ ability to reduce homelessness,” said AG Kaul. “This ruling stops the administration from moving forward with changes that would have harmed Continuum of Care programs.”
In November 2025, HUD issued a new grant application form containing illegal conditions on CoC grants that threatened funding that coalitions of community organizations receive to provide housing and other support for those experiencing homelessness. The administration imposed a cap on the amount of CoC funds that can support permanent supportive housing. If enacted, this cap would have slashed CoC funds for permanent supportive housing by two-thirds and put an estimated 170,000 people at risk of losing their homes.
HUD also imposed other conditions, barring CoC funds from organizations that acknowledge the existence of transgender or nonbinary individuals and excluding programs that provide services for mental disabilities. Wisconsin DOJ and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress’ constitutional power to control spending.
In a decision on the coalition’s motion for summary judgment, the court ruled that the conditions on CoC funding that HUD implemented in its 2025 Notice of Funding Opportunity (NOFO) violate the Administrative Procedure Act and cannot be implemented.
Joining Wisconsin DOJ in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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