Attorney General Bonta Wins Case Protecting Billions of Dollars for States to Fight Homelessness

OAKLAND — California Attorney General Rob Bonta and a coalition of 18 other attorneys general and the governors of Kentucky and Pennsylvania yesterday won their case 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, Attorney General Bonta 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 U.S. Department of Housing and Urban Development (HUD). These funds support vital resources for those most at risk of homelessness, such as veterans, persons with disabilities, and transgender individuals. The U.S. District Court for the District of Rhode Island yesterday 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. 

“Once again, the Trump Administration’s attempt to cut critical homelessness funding has been rejected,” said Attorney General Bonta. “We should be focused on helping more people on our streets move into stable housing, not undermining the programs that are working to make that happen. So long as HUD continues to pursue efforts to roll back its long-standing Housing First approach, we will stand firm in defending it.”  

In November 2025, HUD issued a Notice of Funding Opportunity (NOFO) containing 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. 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. After the lawsuit was filed, HUD withdrew the November NOFO but issued a new December 2025 NOFO that largely kept the same challenged funding conditions, so the coalition expanded its challenge to include both notices. 

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. Attorney General Bonta and the coalition argued in their lawsuit that these conditions violate the Administrative Procedure Act and Congress’ constitutional power to control spending. 

In a decision on Attorney General Bonta and the coalition’s motion for summary judgment, the court yesterday ruled that HUD’s November 2025 and December 2025 NOFOs violate the Administrative Procedure Act and set aside both notices, preventing HUD from implementing the unlawful funding conditions.

Joining Attorney General Bonta in filing this lawsuit were the attorneys general of Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, 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.