Attorney General Phil Weiser sues HUD over federal policy that would push more people into homelessness

Nov. 25, 2025 (DENVER) — The U.S. Department of Housing and Urban Development is illegally upending support for tens of thousands of Americans experiencing homelessness with abrupt changes that will limit access to long-term housing and other services, according to a lawsuit filed today by Attorney General Phil Weiser and a coalition of states and the District of Columbia.

HUD is drastically changing its Continuum of Care grant program in violation of congressional intent by dramatically reducing the amount of grant funds that can be spent on permanent housing and project renewals and putting new unlawful conditions on access to the funding.

Previous changes to the grant conditions have been incremental to not disrupt providers’ ability to provide housing and to budget for their programs well in advance. These wholesale changes will create administrative chaos and likely result in thousands losing housing.

“These new HUD policies virtually guarantee that tens of thousands of formerly homeless people in permanent housing nationwide will eventually be evicted through no fault of their own when the funds aren’t renewed, including some of the 2,600 individuals across the state who get support through the program. Additionally, HUD is planning to withhold funds to states and localities whose approach to homelessness differs from the Trump administration’s. These actions are cruel and callous and will undermine efforts to address homelessness,” said Attorney General Weiser.

For decades, HUD has helped local and regional coalitions plan and coordinate housing and services for people experiencing homelessness through Continuum of Care grants, which were created by Congress. Providers pair these grants with other funding sources and rely on the predictability and continuity of the grants to support the unhoused.

HUD has a longstanding policy of encouraging what is known as a “Housing First” model that provides stable housing to individuals without preconditions like sobriety or a minimum personal income. These policies have been proven to improve housing stability and public health while reducing the costs of homelessness for individuals and their communities.

The Division of Housing at the Colorado Department of Local Affairs serves as the lead state agency that coordinates, prepares and submits the annual consolidated Continuum of Care grant application on behalf of 54 rural counties. Three other HUD-designated Continuum of Care consortiums represent seven metro-Denver counties, Northern Colorado, and the Pikes Peak region. Through these entities, organizations and governments within Colorado receive significant federal funds—totaling over $43.6 million in fiscal year 2024—to support permanent housing, rapid re-housing, transitional housing, and coordinated entry systems across the state. HUD recently issued a notice of funding opportunity that rescinds 2025 funding to the tune of $4,083,405 for the Department of Local Affairs.

Many of HUD’s prior awards expire in early 2026 and the earliest that new awards will be executed is May 2026. As a result of this rescission of previously awarded 2025 funds and new Continuum of Care grant provisions, HUD has manufactured a dangerous lapse in funding for homeless service providers, which will result in a gap in support and services for the individuals currently receiving housing assistance.

The complaint alleges HUD violated its own regulations by not engaging in rulemaking before issuing the changes and violated the law by not receiving congressional authorization for these new conditions, many of which are directly contrary to congressionally passed statutes and HUD’s own regulations. The states also argue that HUD’s actions are arbitrary and capricious several times over, as HUD has made no effort whatsoever to explain the abandonment of their own longstanding policies or consider the obvious consequences of tens of thousands of vulnerable people being suddenly evicted.

The complaint, led by Washington Attorney General Nick Brown, New York Attorney General Letitia James, and Rhode Island Attorney General Peter Neronha, was filed this morning in the federal District of Rhode Island.

Attorney General Weiser joined the coalition, which also includes the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, Oregon, Vermont, Wisconsin, and the governors of Kentucky and Pennsylvania.

Read the lawsuit State of Washington v. U.S. Department of Housing and Urban Development (PDF).

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov

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