Attorney General Kwame Raoul announced that a federal judge has issued a preliminary injunction against the U.S. Department of Housing and Urban Development (HUD), blocking proposed changes to its Continuum of Care grant program. The order comes after Raoul, together with a coalition of states, argued that the changes would have negatively affected tens of thousands across the country by limiting access to housing.
“The illegal changes proposed by the Trump administration threatened to throw tens of thousands of recently and stably housed individuals and families back into homelessness,” Raoul said. “Congress established these vital grants to address the growing problem of homelessness that is affecting cities and states across our country. I am pleased with the court’s action today, and I will continue to stand with my colleagues to push back against the president’s illegal and illogical decisions.”
The Continuum of Care program is considered the largest source for federal homelessness assistance funding in the United States. Judge Mary McElroy’s ruling directs HUD to process applications under previous guidelines, prior to what was described as unlawful program modifications.
Raoul, along with 20 attorneys general and two state governors, filed a lawsuit in November claiming that HUD unlawfully altered support for people experiencing housing insecurity or homelessness. The lawsuit contends that HUD’s actions reduced funding for permanent housing, added new conditions penalizing providers who recognize gender identity diversity, and required residents to accept additional stipulations before receiving housing support.
Further objections included claims that HUD imposed penalties on service providers operating in areas without strict anti-homelessness laws and disadvantaged programs focused on mental health or substance use disorders. These requirements were said not only to conflict with previous agency guidance but also lacked congressional approval.
In Illinois alone, 19 regional Continuums of Care received more than $182 million in federal funds during 2024 for initiatives such as permanent supportive housing, rapid rehousing, transitional housing, and related services throughout the state. This federal funding is matched by significant state resources; over the past two years Illinois has increased its own investment in combating homelessness by 154%.
The coalition’s complaint also stated that HUD failed to explain its departure from longstanding policy practices or consider consequences associated with sudden funding termination for current residents. It further argued that HUD did not adhere to statutory timelines nor secure proper authorization from Congress before implementing these new conditions.
Other parties joining Attorney General Raoul include attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont Washington and Wisconsin as well as governors from Kentucky and Pennsylvania.