States prevail in lawsuit protecting $3B for homelessness services

The Wisconsin Department of Justice along with a multi-state coalition won their case challenging the Trump Administration’s conditions on billions of dollars of funding to provide housing for families experiencing homelessness.  In November 2025, The Wisconsin DOJ joined a coalition in suing the Trump Administration to protect more than $3 billion in Continuum Care funds.  The funds support resources for those most at risk of homelessness. The 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. DOJ said last November, HUD issued a new grant application that threatened funding that coalitions of community organizations receive to provide housing and other support for those experiencing homelessness.