Legal Challenge Against Trump's Grant Restrictions

A coalition of 20 states and Washington, D.C. filed a lawsuit against the Trump administration to block new restrictions on $3 billion in grants aimed at housing and services for the homeless. The lawsuit claims the changes target LGBTQ and other communities, violating federal law.


Devdiscourse News Desk | Updated: 26-11-2025 01:17 IST | Created: 26-11-2025 01:17 IST
Legal Challenge Against Trump's Grant Restrictions
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Twenty Democratic-led states, together with Washington, D.C., have filed a lawsuit aiming to thwart the Trump administration's newly announced restrictions on over $3 billion in funding for homeless services. Arguing these changes violate federal law, they claim the new conditions unfairly target marginalized communities, including LGBTQ individuals.

The lawsuit, brought in a Rhode Island federal court, seeks to prevent the U.S. Department of Housing and Urban Development (HUD) from imposing caps on funding for permanent housing and barring funds for transgender-inclusive programs. The states warn these restrictions could force programs to cut services or close, affecting thousands of individuals in need.

New York's Attorney General Letitia James emphasized the crucial role these grants play in preventing homelessness. The funds, crucial since the Continuum of Care program's inception in 1987, support diverse services under a 'housing first' approach, a strategy now under scrutiny by the administration's shift toward transitional housing with prerequisites.

(With inputs from agencies.)

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