Governor Gavin Newsom and Attorney General Rob Bonta, joined by a multistate coalition that includes Washington, filed a lawsuit Tuesday against the Trump administration over sudden changes to federal homeless housing programs. The lawsuit challenges new rules issued by the U.S. Department of Housing and Urban Development (HUD) that would significantly limit funding for established homeless housing programs.
Earlier this month, HUD introduced new funding provisions in its 2025 Continuum of Care (CoC) notice of funding opportunity. The changes include new restrictions that could severely limit support for programs that work towards reducing homelessness. Under the updated rules, Continuums of Care would be limited to using only 30 percent of their funds for permanent supportive housing and rapid rehousing.
According to state officials, this move threatens years of progress in addressing homelessness, as just last year, CoCs were awarded more than $683 million in funding, with approximately 90% of that funding going towards permanent housing projects.
“Under both Democratic and Republican presidents, HUD’s Continuum of Care Program has helped states, local governments, and nonprofit organizations combat homelessness and provide safe, stable housing to our most vulnerable residents. This program has proven to be effective at getting Americans off the streets, yet the Trump Administration is now attempting to illegally slash its funding,” said AG Bonta.
According to the lawsuit, the changes are unlawful because they alter funding eligibility without congressional authorization and also lack a supporting basis in evidence or reason.
In Kern County, data from the Bakersfield‑Kern Regional Homeless Collaborative helps illustrate what’s at stake for communities. The 2024 Point In Time (PIT) Count found that a total of 2,669 people in Kern County were experiencing homelessness. That represents a roughly 37% increase from 2023.
“Permanent and supportive housing is central to addressing homelessness and helping bring stability into people’s lives,” said Business, Consumer Services, and Housing Secretary Tomiquia Moss. “The federal government’s sudden and cruel changes to how nonprofits and community organizations can access funding threatens to undo years of progress and puts more than 170,000 people nationwide at risk. Here in California, we’re pushing back on this attempt to deprive vulnerable Californians of a place to call home.”
