Arizona Attorney General Kris Mayes has joined a coalition of 20 states and governors in suing the U.S. Department of Housing and Urban Development, alleging the agency has illegally rewritten the rules governing one of the country’s most important homelessness-prevention programs.
The lawsuit, filed Tuesday in federal court in Rhode Island, argues that HUD has abruptly overhauled its Continuum of Care grant program — a primary funding stream for permanent supportive housing and homeless-services providers — in ways that contradict congressional intent and threaten to push thousands of people back into homelessness. The program has long been structured around stability, allowing providers to plan years ahead and to anchor services around a “Housing First” model that offers shelter without preconditions.
According to the complaint, HUD’s new guidance would sharply reduce the share of funds that can be used for permanent housing and slash the portion of grant money providers can count on renewing each year. Advocates say those cuts alone would result in widespread evictions as existing programs lose the resources they rely on to keep people housed. The coalition also contends that HUD added unlawful new conditions — including mandatory service requirements for residents and penalties for communities that don’t adopt certain homelessness policies — without going through the legally required rulemaking process.
Mayes called the changes “drastic” and “unlawful,” arguing that Arizona is already grappling with rising homelessness and soaring housing costs. “These policies will push even more Arizonans into homelessness, straining local resources and making it harder for providers to serve the most vulnerable,” she said.
The complaint further accuses HUD of attempting to sideline programs that support transgender and gender-diverse individuals, as well as people experiencing mental illness or substance-use disorders, despite the agency’s past guidance urging tailored support for those groups. The coalition says HUD failed to justify its departure from decades of its own policy and congressional directives.
Led by attorneys general from Washington, New York and Rhode Island, the lawsuit includes states from across the political map — among them California, Minnesota, New Jersey, Oregon and Wisconsin — alongside governors from Pennsylvania and Kentucky.
Additional background on the Continuum of Care program and its statutory framework can be found on HUD’s official homelessness-assistance portal.
