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1st Circuit Grants HUD Stay on Continuum Changes

By Drooid · Sep 18, 2026, 2:51 AM UTC · How we work

Summary

Story summary

The 1st Circuit Court of Appeals granted HUD a stay to implement Continuum of Care changes.
HUD allocated $1.3 billion for transitional housing and supportive-service grants in the 2026 plan.
U.S. District Judge Mary McElroy blocked the funding changes in 2025 and again in 2026.
The National Alliance to End Homelessness warned the ruling could push 100,000 Americans into homelessness.

History

Historical Context

The 1987 enactment of the McKinney-Vento Homeless Assistance Act established HUD’s Continuum of Care program, aiming to coordinate federal homelessness resources. Congress initially authorized $1.5 billion in annual funding, and by 1995 the National Alliance to End Homelessness reported a 15 % decline in shelter usage. Today, the 1st Circuit Court of Appeals’ 2026 stay on HUD’s $1.3 billion Continuum of Care revisions echoes the earlier legal battles that stalled the Act’s funding in the early 1990s. If Judge Mary McElroy’s injunction persists, the projected 100,000 additional homeless individuals could strain local shelters, prompting renewed congressional scrutiny of federal housing policy.

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Story summary

The 1st Circuit Court of Appeals granted HUD a stay to implement Continuum of Care changes.
HUD allocated $1.3 billion for transitional housing and supportive-service grants in the 2026 plan.
U.S. District Judge Mary McElroy blocked the funding changes in 2025 and again in 2026.
The National Alliance to End Homelessness warned the ruling could push 100,000 Americans into homelessness.

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