Judge Blocks New Federal Housing Rules Impacting Connecticut Residents

A sweeping federal court ruling just put the brakes on controversial changes to the nation’s largest homelessness assistance program. This decision has major implications for Connecticut communities—from Hartford and New Haven to Bridgeport, Stamford, and smaller towns like Middletown, Norwich, Danbury, and Waterbury.

A federal judge ordered the U.S. Department of Housing and Urban Development (HUD) to stop rolling out new rules for its Continuum of Care grant program. This funding helps keep some of the state’s most vulnerable residents off the streets.

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Federal Judge Blocks HUD’s Continuum of Care Changes

The Continuum of Care program is HUD’s main tool for funding homelessness services nationwide. It covers emergency shelters, supportive housing, and permanent housing solutions.

The stakes are high in Connecticut. Nonprofit providers and local agencies rely on this money to support year-round programs in cities and suburbs alike.

Preliminary Injunction Freezes New Rules

U.S. District Court Judge Mary McElroy issued a preliminary injunction and told HUD to halt the rollout of its proposed changes. This ruling keeps the current grant rules and structures in place while the lawsuit moves forward.

The court order temporarily bars HUD from implementing or enforcing the revised program notice. State officials and housing advocates had sounded the alarm about these changes.

Why States Took HUD to Court

A broad group of states brought the lawsuit, claiming HUD’s actions weren’t just harmful—they were unlawful. They argued the new rules would force tens of thousands of people nationwide into homelessness by sharply limiting access to long-term housing and supportive services.

Connecticut’s Attorney General Calls Changes “Drastic and Cruel”

Connecticut Attorney General William Tong joined the challenge and called the proposed shifts in the Continuum of Care program “drastic and cruel.” He warned the rules would have pushed vulnerable residents back onto the streets in cities like New Britain, Waterbury, and New London.

The complaint centers on HUD’s decision to abruptly rescind an existing program notice and replace it with a version that, states say, gutted key protections and funding priorities.

Key Allegations Against HUD’s Policy Shift

The coalition of attorneys general says HUD’s proposed changes violated both the letter and spirit of federal law. They’re especially concerned about how the new policy would reshape funding and impose new conditions on local providers.

Cutbacks to Permanent Housing and Supportive Services

States allege the revised notice sharply reduced access to long-term housing and critical supportive services. Instead of prioritizing permanent housing—an approach backed by research and practice—they say the changes would shift resources away from the very programs that help people stay housed.

The lawsuit argues this shift goes against what Congress intended. Lawmakers have consistently emphasized permanent housing funding as a central strategy for reducing homelessness.

New Penalties and Conditions on Providers

Another major issue? The new conditions HUD tried to impose on grant recipients. The lawsuit claims the new rules:

Penalize providers that recognize and respect gender identity and diversity in their housing policies.

Impose new, burdensome requirements on residents seeking housing assistance.

Disadvantage programs serving people with mental illness and substance use disorders.

Punish providers in places that don’t enforce strict anti-homeless laws, like bans on sleeping in public spaces.

Advocates in communities like Norwalk and Danbury have warned these conditions could force local organizations to choose between best practices for client care and complying with changing federal directives. It’s a tough spot for anyone trying to do the right thing.

Procedural Violations and Missed Deadlines

The lawsuit goes beyond policy disagreements and accuses HUD of cutting legal corners. States say HUD missed congressionally mandated deadlines and bypassed required rulemaking procedures.

They also say HUD failed to provide any meaningful justification for abandoning long-standing policies that providers in Connecticut and nationwide have relied on for years.

A Broad Coalition Challenges HUD

The attorneys general of Washington, New York, and Rhode Island are leading the case. Seventeen other attorneys general have joined them, along with the governors of Kentucky and Pennsylvania.

Connecticut’s participation really highlights how federal homelessness policy connects to daily life in cities like Hartford, New Haven, and Bridgeport.

For Connecticut, the preliminary injunction gives shelters, outreach teams, and housing providers a bit of breathing room. These groups are already stretched thin.

Here is the source article for this story: Judge Halts New Federal Housing Rules

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