HUD faces legal challenges over homelessness funding and agency management

A multi-state coalition, including Delaware Attorney General Kathy Jennings, has secured a legal victory against the U.S. Department of Housing and Urban Development (HUD). The court order prevents the administration from capping funding for the Continuum of Care (CoC) program, which supports permanent housing projects for families facing homelessness.

Attorney General Jennings stated that the legal challenge was necessary to prevent hundreds of Delawareans from losing their homes. The dispute centers on the administration’s rejection of the ‘Housing First’ model, which prioritizes rapid placement in permanent housing without requiring immediate sobriety or income thresholds.

In a separate matter in Southern California, the federal government has faced scrutiny regarding the LA Homeless Services Authority (LAHSA). While a federal judge may have blocked the administration from cutting $241 million in funding to the agency due to allegations of fraud, officials including HUD Secretary Scott Turner and HHS Secretary Robert F. Kennedy Jr. have characterized the agency as a failure. LAHSA has faced questions regarding the management of approximately $1 billion in federal funds amid rising homelessness rates in Los Angeles County.