"The ruling upheld a lower court's preliminary injunction, the latest rebuke to a major shift that advocates warn would push 170,000 people in federally subsidized housing back into homelessness."
"The change in how to spend nearly $4 billion dollars a year would upend two decades of bipartisan federal policy, an approach the appeals court ruling said 'has proven effective.'"
"Citing evidence from plaintiffs, it said multiple local homeless services providers had stopped accepting new clients, and 'stopped referring new clients to certain permanent housing programs because of the planned [funding] cuts.'"
"A coalition of non-profit homelessness advocacy groups, local governments and mostly Democratic-led states brought the legal challenge, arguing the last-minute overhaul announced last fall was unlawful."
A federal appeals court rejected the Trump administration's proposed conditions on homelessness funding, stating that implementing them would be destabilizing. The ruling upheld a lower court's injunction, preventing changes that could push 170,000 individuals, including disabled, elderly, and veterans, back into homelessness. The Department of Housing and Urban Development aimed to redirect funds from permanent housing to transitional programs requiring sobriety and treatment. The ruling emphasized the effectiveness of the existing bipartisan policy and noted that the threat of funding cuts had already harmed local services.
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