Minnesota sues HUD over homelessness funding shift
Minnesota Attorney General Keith Ellison joined a 21‑state coalition suing HUD to block newly announced Continuum of Care rule changes that shift funding away from permanent supportive housing toward transitional models. Filed Tuesday in the U.S. District Court for the District of Rhode Island, the suit argues the Trump administration’s policy flip will cut support for projects serving about 3,600 Minnesotans and unlawfully undermine Housing First; HUD says the reforms aim to promote self‑sufficiency and end dependency.
📌 Key Facts
- Plaintiff: Minnesota AG Keith Ellison joined 20 other AGs in a federal complaint
- Filed: Tuesday, Nov. 25, 2025, in U.S. District Court for the District of Rhode Island
- Target: HUD’s CoC funding reforms that curtail permanent supportive housing in favor of transitional housing/support
- Local impact: Advocates say ~3,600 Minnesotans could be affected by reduced permanent supportive housing funding
- HUD response: Secretary Scott Turner defended the changes as focusing on independence and ending dependency
📊 Relevant Data
Compared with Treatment First, Housing First programs decreased homelessness by 88% and improved housing stability by 41%.
In 2024, Black people represented 12% of the U.S. population but accounted for nearly 32% of all people experiencing homelessness.
HUD Releases 2024 Annual Homeless Assessment Report — HUD User
In 2024, Hispanic or Latino people represented 19% of the U.S. population but 28% of the homeless population.
The 2024 Annual Homelessness Assessment Report (AHAR) to Congress — HUD User
American Indian, Alaska Native, or Indigenous people represented 1% of the U.S. population but 18% of the unsheltered homeless population in 2024.
Homelessness in America: Statistics, Analysis, & Trends — Security.org
In Minnesota, persons who are American Indian, Black, and Latino are overrepresented in the population experiencing homelessness according to the 2024 Point In Time Count.
2024 Point In Time Count Summary — Minnesota Interagency Council on Homelessness
Black and Indigenous Americans are far more likely to experience homelessness than other groups, with disparities potentially linked to racial gaps in income and wealth leading to higher vulnerability in high-rent areas.
Homelessness and race: the impact of structural conditions on Black and Indigenous homelessness — Oxford Academic - Social Problems
The HUD policy change shifts more than half of the 2026 CoC funding from permanent housing to transitional housing with work and service requirements, potentially affecting up to 170,000 people relying on permanent supportive housing.
Trump Administration Releases CoC Funding Notice Drastically Cutting Funding for Permanent Housing — National Low Income Housing Coalition
Studies show that Housing First results in greater improvements in housing outcomes for homeless adult populations compared to other models.