Washington wins appeals court ruling against HUD over housing assistance programs

# Federal Appeals Court Blocks HUD Housing Restrictions

A federal appeals court has rejected the U.S. Department of Housing and Urban Development's attempt to implement new restrictions on homelessness assistance funding. On April 1, the court upheld a preliminary injunction preventing HUD from limiting grant funds available for permanent housing in its Continuum of Care program, the nation's largest source of federal homelessness assistance.

Washington Attorney General Nick Brown co-led a multistate coalition in challenging the restrictions after HUD abruptly modified the program in November 2025. The appeals court found that HUD's planned restrictions would be "immediately destabilizing and disastrous" for constituents relying on these programs. A federal district court judge had previously sided with the states in December, issuing the preliminary injunction.

Washington receives approximately $120 million annually through the grant program, with the majority distributed to King, Pierce, Snohomish, Spokane, and Clark counties. The remaining $25 million supports housing services in Washington's 34 other counties. Brown stated the ruling protects vulnerable residents and prevents further deterioration of the state's homelessness crisis.