Judge sides with KY, other states blocking Trump’s effort to reshape homeless aid
A federal judge in Rhode Island has temporarily blocked President Donald Trump’s administration from enforcing new conditions it placed on long-term housing aid for homeless Americans in a lawsuit Kentucky joined with several other states and cities.
In November, the administration said it would shift the nearly $4 billion it uses to combat homelessness by capping federal assistance for permanent supportive housing at 30% and allocating more dollars to transitional housing programs with strict work or addiction-treatment requirements.
The last-minute changes risk 70% of the more than $15 million Kentucky had been approved to receive for permanent supportive housing in 118 of the state’s 120 counties, and the Tuesday ruling unlocks more than $21 million the administration could have withheld, Gov. Andy Beshear said in a Dec. 23 statement.
“We should be finding ways to solve homelessness, not cause it, and unlawfully holding this congressionally approved funding was a dangerous step that would put thousands of Kentuckians and millions of Americans at risk of losing their home,” Beshear said.
The Trump administration withdrew its plan earlier this month in a move Rhode Island federal district court Judge Mary S. McElroy called an attempt “to evade court jurisdiction.” The U.S. Department of Housing and Urban Development said it would reissue the proposal after making “appropriate revisions.”
Federal Continuum of Care funding from HUD supports nearly 11,000 year-round beds in Kentucky, according to a 2024 housing inventory. Lexington receives more than $2.5 million every year under the program, the vast majority of which supports permanent supportive housing and rapid rehousing services.
Under the administration’s proposal, Fayette County stood to lose more than two-thirds of its federal funding.
U.S. housing-first policy ensures chronically homeless Americans receive long-term shelter and offers treatment for the root causes, such as addiction or mental illness. The Trump administration’s proposal would have required recipients to accept that treatment or find work.
Free housing encourages abuse, the administration insists, and existing rules favor shelters that deprioritize treatment.
Kentucky joined 19 other states and the District of Columbia in seeking a preliminary injunction. The last-minute changes the administration issued in November would have forced states and cities to reapply for funding that had already been approved this year, Beshear said in the statement.
“As Governor, it’s my job to stand up for our people and I am thankful that today’s ruling will protect housing for 700 households and 1,200 Kentuckians,” he said.
