"Last year, California communities won more than $683 million in federal homelessness funds through what is called the Continuum of Care program. About 90% of that went to permanent housing projects, which currently house tens of thousands of Californians, according to Newsom. The new rule threatens to put those people back out onto the street, he said in a news release."
"The new policy also prohibits the use of federal funds for diversity and inclusion efforts, support of transgender clients, and use of "harm reduction" strategies that seek to reduce overdose deaths by helping people in active addiction use drugs more safely. And it gives preference for projects in cities, counties and states that ban homeless encampments. Both lawsuits allege that the Trump administration's funding changes violate the Administrative Procedure Act and the Constitution by defying the rules Congress set out for distributing the funds."
Santa Clara County and San Francisco, joined by national housing advocacy groups, filed a lawsuit challenging changes to federal homelessness funding. Gov. Gavin Newsom's administration and several states filed a separate suit. The policy change would alter Continuum of Care grants and restrict allowable uses of funds, including diversity and inclusion efforts, support for transgender clients, and harm reduction strategies. The rule also favors jurisdictions that ban homeless encampments. California communities previously received over $683 million through Continuum of Care, primarily for permanent housing. Lawsuits contend the rule violates the Administrative Procedure Act and the Constitution, and providers warn of delays and potential displacement.
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