BOSTON — Massachusetts is among nearly two dozen states suing the Trump administration for setting limits on anti-discrimination enforcement of federal housing laws.
A lawsuit filed Tuesday in U.S. District Court in Rhode Island by Attorney General Andrea Campbell and 21 other Democrats challenges the U.S. Office of Housing and Urban Development policy imposing new conditions on federal homelessness funding, arguing the changes could force thousands of people nationwide out of permanent housing.
The lawsuit alleges HUD’s new conditions are “arbitrary and capricious” and violate the Administrative Procedure Act by bypassing the required federal rule-making process. The AGs are asking the court to declare the funding conditions unlawful and prevent HUD from enforcing them.
The AGs said HUD “failed to consider the consequences of their actions” by setting new limits on the Continuum of Care program, which it has developed over the years. They said the move gave service providers little time to change their programs to comply with the new rules.
“Now, these entities will be forced to fundamentally reshape their programs in only the two months defendants have given to respond — or forgo this critical funding,” they wrote. “Many programs are likely to lose out on funding, with their clients bearing the worst of it.”
The new policy is the latest attempt by the Trump administration to set restrictions on the program, which provides housing and supportive services for people experiencing homelessness or housing instability.
In November, HUD announced it was banning foreigners and companies with a majority foreign ownership from receiving the grant funding. The changes threatened more than $136 million in annual funding for 11 Continuum of Care groups in Massachusetts.
But states and nonprofits sued, arguing in a complaint that those restrictions are “unlawful” and would force tens of thousands of formerly homeless individuals back onto the streets.
Hours before a scheduled court hearing on the lawsuit, HUD announced in a court filing that it is temporarily “withdrawing” proposed changes to the program while it updates the plan.
A federal judge issued a ruling in December ordering the agency to restore cuts it made to federal funding for the program. Despite the court ruling, HUD moved in June to cap funding for permanent housing and place other conditions on the money, according to the lawsuit.
The latest move to restrict funding could threaten housing for at least 97,000 residents in permanent housing funded by the program, including nearly 2,600 people in Massachusetts, according to estimates from the National Alliance to End Homelessness.
In the lawsuit, the AGs said the program supports permanent housing and services for vulnerable residents who are experiencing chronic homelessness and struggling with mental illnesses, substance use disorder and disabilities.
“Instead of helping us tackle our housing crisis, the Trump administration is once again standing in our way and putting thousands of vulnerable people at risk,” Campbell said in a statement. “The court has previously ruled that the federal government cannot arbitrarily impose a new and illegal cap on funding for permanent housing, and we intend to be successful again.”
Nationally, an estimated 771,000 people were homelessness in January 2024 — an increase of 118,300 compared with 2023, according to HUD data. Between 2023 and 2024, Massachusetts had a 74% increase in family homelessness, or more than 9,512 more people, the data shows.
Under Massachusetts’ “right-to-shelter” law, the state is required to provide emergency housing and food to homeless families, including asylum seekers and other legal immigrants.
A wave of immigration under the Biden administration saw tens of thousands of migrants arrive in the state over the past several years, overwhelming the shelter system. The state spent nearly $1 billion last year on shelter, food and other benefits for migrants and other homeless families.
As of Thursday, there were 1,498 families in the state’s emergency shelter system, according to the Executive Office of Housing and Livable Communities.
Christian M. Wade covers Massachusetts state government and politics for CNHI News and North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.