Story perspectives

Trump Administration Slashes Permanent Housing Funds, Sparks Legal Battle

11/26/2025

Summary

Story summary

The Trump administration announced cuts to the 2026 funding for permanent housing, reallocating over half to temporary transitional housing with work or service requirements.
The U.S. Department of Housing and Urban Development (HUD) has capped funding for permanent housing at 30 percent, reduced from 90 percent.
A lawsuit claims these new conditions are “unlawful and unconstitutional,” arguing that funding should be based on need.
New York Attorney General Letitia James highlighted the significance of Continuum of Care funds for vulnerable communities nationwide.

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Story summary

The Trump administration announced cuts to the 2026 funding for permanent housing, reallocating over half to temporary transitional housing with work or service requirements.
The U.S. Department of Housing and Urban Development (HUD) has capped funding for permanent housing at 30 percent, reduced from 90 percent.
A lawsuit claims these new conditions are “unlawful and unconstitutional,” arguing that funding should be based on need.
New York Attorney General Letitia James highlighted the significance of Continuum of Care funds for vulnerable communities nationwide.