Attorney General Ellison wins lawsuit protecting billions for states to fight homelessness 

Court grants summary judgment for AG Ellison and coalition of 21 states, blocking Trump Administration’s illegal new conditions on funding for Continuum of Care programs

If enacted, illegal conditions would have put 170,000 people at risk of homelessness

June 30, 2026 (SAINT PAUL) —  Late yesterday, Minnesota Attorney General Keith Ellison, as part of a coalition of 19 attorneys general and two governors, won his 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 first” housing and services for families experiencing homelessness. In November 2025, Attorney General Ellison and the coalition sued the Trump administration to protect more than $3 billion in Continuum of Care (CoC) funds that the Department of Housing and Urban Development (HUD) jeopardized by imposing illegal new conditions. These funds support vital resources for those most at risk of homelessness, such as veterans, those with disabilities, and transgender individuals. Late yesterday, 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.

“Trump’s effort to leave no billionaire behind, by making war on Americans just trying to afford their lives, has taken many forms, including this shameful attempt to keep homeless folks out of stable housing. We may no longer be surprised by this war, but we must remain committed to fighting it, and that’s why I filed this lawsuit,” Attorney General Ellison said. “With the court’s ruling, we’ve once again protected vulnerable Americans from more gratuitous cruelty and the rule of law from another blatant assault.”

In November 2025, HUD issued a new grant application form (a Notice of Funding Opportunity) that contained illegal conditions on CoC grants that threatened funding that coalitions of 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 that if enacted, 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 attempted to bar CoC funds from organizations that acknowledge the existence of transgender or nonbinary individuals, and to exclude programs that provide services for people with mental disabilities. Attorney General Ellison and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress’ constitutional power to control spending. 

In this decision granting Attorney General Ellison 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 violate the federal Administrative Procedure Act and cannot be implemented.

Joining Attorney General Ellison in the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.