TRENTON, NJ – New Jersey Attorney General Matthew J. Platkin has joined a coalition of states suing the U.S. Department of Housing and Urban Development, alleging that new federal policies will unlawfully strip funding from programs that keep tens of thousands of Americans housed.
The lawsuit, filed Tuesday in the federal District of Rhode Island, claims HUD is illegally overhauling its Continuum of Care grant program by sharply reducing funding for permanent housing, limiting renewals, and imposing new conditions that conflict with congressional intent.
Platkin said the changes would disrupt the longstanding “Housing First” model, which provides stable housing without preconditions such as mandatory treatment or income thresholds.
“The Trump Administration is actively engaging in an illegal effort to hamper the work of organizations that battle homelessness in New Jersey and across our country,” Platkin said. “HUD’s changes are not only unlawful, they will cause more homelessness by blocking numerous New Jerseyans from getting access to housing.”
HUD accused of violating federal law
The complaint alleges HUD failed to follow required rulemaking procedures and lacked congressional authorization for the sweeping revisions. It also argues the agency’s new rules are “arbitrary and capricious,” overturning decades of policy without explanation or consideration of the impact on vulnerable populations.
Under the proposed changes, the share of Continuum of Care funds that can be used for permanent housing would drop from roughly 90 percent to about one-third starting in 2026. Renewal funding for existing housing programs would also fall from 90 percent to 30 percent, potentially forcing thousands of residents from stable housing.
Advocates warn of increased evictions nationwide
The lawsuit contends the policy shift will lead to widespread evictions, create administrative instability for local housing providers, and punish jurisdictions that do not align with the administration’s political or social positions.
The plaintiffs also argue HUD’s new conditions unlawfully penalize programs that recognize transgender and gender-diverse individuals or that continue serving residents with mental health or substance use challenges.
Bipartisan coalition challenges federal changes
The case is led by the attorneys general of Washington, New York, and Rhode Island. Platkin joined alongside officials from Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Oregon, Vermont, Wisconsin, and the governors of Kentucky and Pennsylvania.
Attorney General Matthew J. Platkin joined a 21-member coalition suing HUD, alleging its new housing policy violates federal law and threatens to increase homelessness.