The lawsuits allege the administration violated congressional intent by dramatically reducing the amount of grant funding that can be spent on permanent housing and project renewals, from about 90 percent down to a third of the funding.
HUD also planned to place new restrictions on access to the funds, including requirements mandating providers recognize only two genders, and punishing providers in localities that do not roll out strict anti-homeless laws.
Monday’s filing states the government plans to “assess the issues raised” and release a revised notice.
“Because the December and January deadlines set by the 2025 [funding notice] are no longer operative, Plaintiff’s request for emergency, expedited relief via a Temporary Restraining Order is now moot,” the filing argues.
In an update posted to the HUD website, the department said in the previous fiscal year 2024-2025 funding notice, it “reserved the right to make changes to the [funding notice] instead of processing renewals for a variety of reasons.”
“The Department still intends to exercise this discretion and make changes to the previously issued [Continuum of Care Notice of Funding Opportunity] to account for new priorities,” the update states.
US District Court Judge Mary S. McElroy criticized the Trump administration for the sudden withdrawal at Monday’s hearing, according to Reuters.
“It feels like intentional chaos,” said McElroy. “You can change the policy all you want [but] there’s a mechanism for doing so.”
McElroy ordered the Trump administration to file new arguments by next week, Politico reported.
Material from previous Globe stories was used in this report.
Christopher Gavin can be reached at christopher.gavin@globe.com.
