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Lawsuit: HUD tied homeless aid to Trump’s political agenda

  • By Al Mayadeen English
  • Source: The New York Times
  • 12 Sep 2025 14:56
  • 1 Shares
3 Min Read

Two organizations have sued the Trump administration, claiming new rules for $75 million in homelessness grants illegally tie federal aid to political conditions on immigration, abortion, and other issues.

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  • An unsheltered person rests on the street as a team from the Miami-Dade County Homeless Trust tallies the number of people living unsheltered in downtown Miami, in the early morning hours of Friday, Jan. 26, 2024. (AP)
    An unsheltered person rests on the street as a team from the Miami-Dade County Homeless Trust tallies the number of people living unsheltered in downtown Miami, in the early morning hours of Friday, January 26, 2024. (AP)

Two organizations supporting the homeless have filed a federal lawsuit in Rhode Island, accusing the Department of Housing and Urban Development (HUD) of illegally conditioning homelessness grants on adherence to President Donald Trump’s political positions.

The suit alleges that with $75 million in homelessness grants about to expire, HUD coerced applicants into aligning with the Trump administration’s stances on immigration enforcement, DEI, abortion, and other divisive issues.

“These conditions have nothing to do with homelessness,” said Ann Oliva, chief executive of the National Alliance to End Homelessness, one of the plaintiffs, as reported by The New York Times. “It’s carrying out a political agenda in a program that should never be partisan.”

The lawsuit argues the conditions violate the Constitution, which gives Congress, not the executive branch, the power to dictate federal spending. HUD has not publicly commented on the case.

The new rules disqualify groups in many states from applying for funding. Programs are penalized if they operate clean needle exchanges or are based in states or cities that lack encampment bans or refuse to cooperate with federal immigration enforcement.

Read more: After Chicago, NYC, Trump turns to Baltimore amid federal crackdown

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An analysis by the National Alliance to End Homelessness suggests that only nine states, largely Republican strongholds, fully comply with the new conditions.

Impact on United States homelessness programs

King County, Washington, previously filed a similar lawsuit after HUD attached conditions to already-awarded homelessness funds. In May, a federal judge temporarily blocked enforcement of those demands.

The changes come amid delays in federal homelessness aid. While Congress approved $75 million for supportive housing in 2023 and $100 million in 2024, none of the funds have been spent. The Trump administration recently restarted the competition for grants under the program CoC Builds, with a one-week deadline before the money expires.

Legal challenges against HUD policies

The second plaintiff, the Women’s Development Corporation in Providence, believed it had secured $7 million from HUD to build new apartments for the homeless. After a congratulatory call from Senator Jack Reed’s office, the group learned that the funding was stalled and subject to the new application process.

Executive director Frank T. Shea said the group is effectively barred from reapplying because Rhode Island does not enforce encampment bans and is at odds with federal immigration enforcement. “None of these factors are relevant to whether this would be a good project, and some we have no control over,” he said.

Read more: US homelessness sees 18% rise, hits peak record

The lawsuit raises broader questions about whether the United States will see homelessness aid turned into an ideological tool. Critics argue that attaching political conditions undermines the purpose of federal housing programs and sets a troubling precedent.

  • United States
  • Trump administration
  • Homelessness
  • Donald Trump

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