Attorney General Bonta Secures Court Victory Blocking Trump Administration’s Latest Attempt to Divert Funding from Permanent Supportive Housing

OAKLAND — As part of a coalition of 21 attorneys general and two governors, California Attorney General Rob Bonta today secured a major victory in the July 2026 lawsuit brought by the coalition to challenge the Trump Administration’s attempt to divert federal funding away from permanent supportive housing. The U.S. District Court for the District of Rhode Island today set aside the U.S. Department of Housing and Urban Development’s (HUD) Fiscal Year 2026 Notice of Funding Opportunity (NOFO) for the Continuum of Care (CoC) Program in its entirety, preventing HUD from moving forward with the funding notice. CoC is the federal government’s flagship program for funding affordable housing and other services for individuals facing housing insecurity or experiencing homelessness. The Court issued its decision after considering the parties’ cross-motions for summary judgment. The Court found that HUD violated the Administrative Procedure Act in issuing the 2026 NOFO, so it did not need to consider the coalition’s other legal arguments. 

“The Trump Administration made another attempt to undermine permanent supportive housing — and we stopped them yet again,” said Attorney General Bonta. “This ruling protects essential federal funding that helps thousands of vulnerable people stay housed. No one is above the law, including this Administration.” 

In their lawsuit, Attorney General Bonta and the coalition warned that HUD’s 2026 NOFO could put at least 97,000 residents of federally funded permanent supportive housing at risk of losing their homes. A federal court previously blocked HUD’s 2025 CoC NOFO, which sought to divert more than $3 billion from permanent supportive housing, and Congress has also acted to protect renewal funding for these projects. 

In filing the July 2026 complaint, Attorney General Bonta joined the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania.