Press Release  AG Campbell Wins Case Protecting Billions Of Dollars For States To Fight Homelessness

BOSTON — Massachusetts Attorney General Andrea Joy Campbell and a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania have won their lawsuit 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, AG Campbell joined the coalition in suing the Trump Administration to protect more than $3 billion in Continuum of Care (CoC) funds that were jeopardized by illegal new conditions imposed by the Department of Housing and Urban Development (HUD). These funds support vital resources for vulnerable residents experiencing homelessness, such as veterans, families with young children, those with disabilities, 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.  

“Every Massachusetts resident deserves stable housing, which builds a foundation for addressing other urgent challenges like job training, mental health care, and substance use treatment,” said AG Campbell. “This victory ensures that the Trump Administration cannot stand in our way as we work to address our critical housing crisis and help our residents achieve stability and opportunity.” 

In November 2025, HUD issued a new grant application form containing illegal conditions on CoC grants that threatened funding that 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. AG Campbell and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress’s constitutional power to control spending.   

In a decision on AG Campbell and 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 Attorney General in filing this lawsuit were the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Michigan, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania. 

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