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Judge Blocks $4 B HUD Funding Shift, Cites APA Violation

8/8/2026

Summary

Story summary

Judge Mary McElroy blocked the Trump administration’s plan to restructure $4.04 billion in Continuum of Care funding.
She found HUD’s June 2026 notice violated the Administrative Procedure Act.
HUD Secretary Scott Turner had sought to shift the $4 billion to temporary housing.
Plaintiffs, including New York Attorney General Letitia James, said the $1.3 billion for transitional housing would affect 97,000 people.
The judge denied an injunction, allowing HUD to pursue similar revisions for fiscal 2027.

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Story summary

Judge Mary McElroy blocked the Trump administration’s plan to restructure $4.04 billion in Continuum of Care funding.
She found HUD’s June 2026 notice violated the Administrative Procedure Act.
HUD Secretary Scott Turner had sought to shift the $4 billion to temporary housing.
Plaintiffs, including New York Attorney General Letitia James, said the $1.3 billion for transitional housing would affect 97,000 people.
The judge denied an injunction, allowing HUD to pursue similar revisions for fiscal 2027.