Appeals court blocks HUD restrictions on homelessness funding after lawsuit by Raoul and others

Kwame Raoul Attorney General at Illinois
Kwame Raoul Attorney General at Illinois
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Attorney General Kwame Raoul announced on Apr. 2 that a federal appeals court rejected the U.S. Department of Housing and Urban Development’s request to impose new restrictions on grant funding for housing assistance programs. The ruling prevents changes that could have limited access to long-term housing and other services for tens of thousands of people experiencing homelessness or housing insecurity.

The decision is significant because it maintains support for vulnerable populations who rely on federal and state programs to avoid homelessness. “I am pleased with the court’s decision today to prevent the Trump administration’s illegal changes that would throw thousands of previously unhoused Illinois residents back into homelessness,” Raoul said. He added, “Congress established vital grants to address the growing problem of housing insecurity; yet, the president continues to attempt to make illegal and illogical changes to housing programs that hurt our most vulnerable residents. I will not stand for these actions and will continue to push back with my colleagues.”

In November 2025, Raoul joined a coalition of 20 attorneys general in suing HUD after it changed its Continuum of Care program by reducing funds available for permanent housing and adding conditions on access. U.S. District Court Judge Mary McElroy issued an injunction in December 2025 barring HUD from implementing these restrictions, citing potential irreparable harm.

The appeals court found that if HUD proceeded with its planned funding restrictions, states would face “immediately destabilizing and disastrous” effects for their constituents.

Illinois received over $182 million in federal funding through regional continuums of care in 2024, supporting permanent supportive housing, rapid rehousing, transitional housing, and related services statewide. Illinois has increased state funding for addressing homelessness by 154% over the past two years.

According to the official website, the Illinois Attorney General advocates for vulnerable groups such as workers, immigrants, and seniors; handles thousands of consumer complaints each year; aims to protect consumers while promoting safer communities; extends advocacy efforts across Illinois; partners with law enforcement agencies; supports crime victims; promotes open government; and offers complaint filing services related to consumer fraud or civil rights.

Joining Raoul in this legal effort were attorneys general from multiple states as well as governors from Kentucky and Pennsylvania.



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