Attorney General William Tong has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) in response to recent policy changes that he says would undermine support for Americans experiencing homelessness or housing insecurity.
The legal action, joined by attorneys general from 19 other states and the governors of Kentucky and Pennsylvania, seeks to halt new rules affecting the Continuum of Care grant program. The suit argues that HUD’s changes would sharply reduce funding for permanent housing and project renewals, while also imposing new conditions on access to these grants. These include requirements that providers recognize only two genders, mandate acceptance of services as a precondition for housing, and penalize localities that do not enforce strict anti-homeless laws—policies at odds with previous HUD guidance and congressional intent.
“These drastic and cruel changes will throw people out of their homes and back onto the streets. These are rules based on memes and sound bites with zero respect or understanding of what it takes to provide safe and stable housing. The Trump Administration cannot make new rules up as they go along, and we’re suing to stop them,” said Attorney General Tong.
Nancy Navarretta, Commissioner of the Connecticut Department of Mental Health & Addiction Services (DMHAS), expressed concern about the impact on those currently receiving assistance: “It is with sincere gratitude that I thank Attorney General Tong and our state partners for pursuing this case against the federal government. But, it is also with profound disappointment that we must file suit again to ensure safety net services for the people of Connecticut. The proposed changes by HUD would endanger the housing and services of the 2,300 individuals we serve at DMHAS as we enter the winter weather and at critical inflection points in their engagement in services. Further, the policy changes accompanying the funding component would rewind the clock on effective, evidenced-based practices in favor of confinement. We have decades of proof: involuntary treatment and punitive criminal justice approaches drive trauma, not recovery. Connecticut is a national leader on these issues and we cannot endanger the progress we have made through the decades”.
Sarah Fox, Chief Executive Officer of the Connecticut Coalition to End Homelessness, described HUD’s actions as an attempt to dismantle essential support systems: “HUD’s action to cap federal Continuum of Care programs is an attempt to gut the housing system that exists to support thousands of Connecticut residents and is a direct attack on the rights and liberties afforded to us all as citizens. If allowed to stand, HUD’s policy will deliver an effective cut of 70 percent to the permanent housing and support services. We should be bringing people indoors, not kicking them out into the cold, and we thank Attorney General Tong for the swift and decisive action he is taking today to save the backbone of the federal homelessness response system here in Connecticut.”
House Majority Leader Jason Rojas added: “The U.S. Department of Housing and Urban Development is turning the Housing First policy on its head by slashing renewals, forcing providers to jump through needless ideological hoops, and punishing localities that refuse to adopt draconian anti-homeless laws. That’s not only unlawful, it’s cruel. In Connecticut, we’ve seen how stability in funding and services leads to people getting back on their feet. We will not stand by while this administration recklessly undermines that progress, and we thank Attorney General Tong and our sister states in holding HUD accountable.”
Other state leaders echoed concerns about potential harm from these policies as colder weather approaches.
For years, HUD has supported local coalitions addressing homelessness through Continuum of Care grants established by Congress. Providers depend on these funds’ predictability for planning programs aimed at supporting unhoused individuals.
Traditionally, about 90% of Continuum of Care funding has gone toward permanent housing under a “Housing First” model—offering stable accommodation without preconditions such as sobriety or minimum income levels—which research shows improves outcomes for both individuals experiencing homelessness and communities overall.
Under HUD’s new rule set for implementation starting in 2026—without congressional authorization—the portion allocated for permanent housing could be reduced by two-thirds; renewal guarantees may drop from around 90% year-to-year protection down to just 30%. Advocates warn this could result in widespread evictions among formerly homeless individuals who rely on continued funding.
Additionally, critics say HUD plans would disadvantage applicants acknowledging trans or gender-diverse populations or prioritizing those with mental health or substance use challenges; it would also penalize communities using different strategies than those favored by current federal leadership.
The complaint alleges procedural violations including failure by HUD to follow proper rulemaking processes or obtain congressional approval before enacting significant programmatic shifts—many directly contradicting existing statutes or agency regulations—and charges that decisions were made arbitrarily without considering likely consequences.
