Attorney General Bonta Secures Court Order Blocking HUD Changes that Would Worsen Homelessness Crisis

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to a federal judge ordering the U.S. Department of Housing and Urban Development (HUD) to halt planned changes to its Continuum of Care grant program, which is the largest resource for federal homelessness assistance funding. In an oral order granting a preliminary injunction sought by Attorney General Bonta, 18 other attorneys general, and two governors, U.S. District Court Judge Mary McElroy directed HUD to process applications under the terms that existed prior to its unlawful program changes.

On November 25, 2026, Attorney General Bonta and the coalition announced filing a lawsuit against HUD for illegally upending support for people experiencing housing insecurity or homelessness by abruptly rescinding a necessary program notice, replacing it with another that limited access to long-term housing and other services. The lawsuit says HUD drastically changed its Continuum of Care grant program in violation of congressional intent by sharply reducing funding for permanent housing and putting unlawful conditions on access to the funding.

“If the Trump Administration wants to stop losing in court, it should stop breaking the law. Today’s victory is important because the proposed HUD funding restrictions would have worsened the homelessness crisis, and that’s simply unacceptable,” said Attorney General Bonta. “When it comes to housing more of our unhoused neighbors and providing them the support they need, there is much progress we still need to make, and we need the federal government’s continued support — not actions that drag us backwards.”

The illegal conditions include penalizing housing providers that recognize gender identity and diversity, and mandating residents agree to additional conditions to obtain housing. HUD also added illegal conditions to punish providers in localities that do not enforce strict anti-homelessness laws and disadvantage programs that address mental disabilities and substance use disorder. Those conditions go against HUD’s previous guidance and were not authorized by Congress. The program notice was also issued well after HUD’s congressionally-mandated deadline for making program changes, virtually guaranteeing gaps in funding.

In filing the November complaint against the Trump Administration, Attorney General Bonta joined the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.