Harrisburg, PA – Today, Governor Josh Shapiro filed a multistate lawsuit challenging the Trump Administration’s abrupt and unlawful overhaul of the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care (CoC) Program — the nation’s primary federal initiative supporting individuals and families experiencing homelessness.
HUD’s new policies threaten to cancel thousands of existing housing programs in Pennsylvania and coerce nonprofits and local governments into unlawful, discriminatory practices. Last year alone, Pennsylvania received $177 million in CoC funding to support permanent housing, rental assistance, and supportive services that keep vulnerable Pennsylvanians safely housed.
Governor Shapiro has been working aggressively to protect Pennsylvania taxpayers and ensure the federal government honors its obligations. His Administration has successfully challenged multiple federal actions — securing continued SNAP benefits for millions of Pennsylvanians, unfreezing billions in critical federal funds, stopping the unlawful decision to cut AmeriCorps programs across the Commonwealth, restoring over $230 million for school districts, blocking the Trump Administration from seizing the private medical records of patients at Children's Hospital of Philadelphia (CHOP), and forcing the release of more than $500 million in public health grants. Courts have repeatedly ruled in Pennsylvania’s favor, blocking attempts to cancel or withhold previously awarded federal funding across key areas like education, public health, infrastructure, and environmental protection.
Today, Governor Shapiro is once again taking action to ensure the federal government upholds its commitments to Pennsylvania, as the law requires.
“For decades, these housing programs have helped vulnerable people — families, seniors, veterans, people with disabilities, and LGTBQ+ Pennsylvanians — have access to safe, affordable housing,” said Governor Shapiro. “Now, the Trump Administration is trying to abruptly dismantle the very system Congress created to fight homelessness. Pennsylvanians depend on this funding and the Trump Administration’s decision will force people out of their homes, defund organizations doing critical work, and leave state taxpayers on the hook. I’m taking action to ensure the federal government keeps its promise — because no Pennsylvanian should be thrown back into homelessness because of political games in Washington.”
Permanent housing support has been reliably demonstrated to be the most important tool for addressing homelessness. For years, the CoC Program has awarded renewable, annual funding, with the vast majority of funds dedicated to permanent housing programs.
The CoC Program awards funding on an annual basis, with the majority dedicated to renewing permanent housing programs.
Earlier this month, HUD enacted these changes with no public notice, no explanation, and no acknowledgment that they contradict the agency’s own long-standing Housing First policies. HUD instituted unprecedented policy changes that:
Slash permanent housing funding — capping funding for permanent housing at just 30 percent of total funds, down from roughly 90 percent.
Impose unlawful conditions eliminating funding for applicants who acknowledge the existence of or serve LGBTQ+ Pennsylvanians.
Punish local governments whose homelessness policies differ from the Trump Administration’s.
Require providers to fundamentally redesign programs within an impossible timeline, risking service interruptions and evictions.
Impact on Pennsylvania
Pennsylvania relies on this funding to provide stable housing, rental assistance, supportive services, and emergency shelter to tens of thousands of residents each year.
HUD’s new policies risk the immediate cancellation of hundreds of current Pennsylvania CoC projects, threatening to reduce funding to address homelessness in Philadelphia by $28 million and in Pittsburgh by $17 million and force thousands of Pennsylvanians back into homelessness.
The Trump Administration’s changes would result in more children in the foster care system due to a lack of access to stable housing. According to FY2024 data on the federal Adoption and Foster Care and Analysis Reporting System (AFCARS) dashboard, more than 1,100 children in Pennsylvania entering foster care were experiencing homelessness or inadequate housing.
The changes would also lead to an increased use of hospital emergency rooms and higher spending on Medicaid, putting strain on the health care system, jeopardize long-term housing for formerly homeless families who are stably housed today, and place a greater strain on law enforcement and first responders. HUD’s actions could force thousands in Pennsylvania back into homelessness.
The lawsuit asks the Court to vacate the unlawful funding conditions, so that the CoC program can be administered as Congress designed it and to preserve stable funding for the programs that keep people housed.
Governor Shapiro and His Administration Expands Access to Safe, Affordable Housing
Governor Shapiro and his Administration are delivering historic progress to improve access to affordable housing across Pennsylvania. Under Governor Shapiro, funding for the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) program has nearly doubled — bringing total available funding this year to more than $85 million to build and repair affordable housing in communities across the Commonwealth.
Pennsylvania is currently short more than 100,000 housing units, nearly 60 percent of homes were built before 1970, and the number of renters has surged by almost 200,000 households since 2010. PHARE funding helps close those gaps by giving communities the flexible resources they need to create new housing, rehabilitate aging units, and support families at risk of homelessness.
Since Governor Shapiro took office, PHARE-funded projects have increased by 55 percent — more than 1,000 projects have helped build or repair over 8,200 homes, assisted thousands of home buyers, and supported tens of thousands of families with counseling, repairs, and services that help keep people safely housed. In 13 years, PHARE’s $435 million in grants has leveraged over $2.3 billion in additional investment, generating a nearly six-to-one return.
To keep more Pennsylvanians in their homes and ensure their constitutional rights are protected, the Governor’s 2024–25 bipartisan budget included:
$5 million increase for the Homeless Assistance Program to support rental assistance, bridge housing, emergency shelter, eviction prevention, and other supportive housing services.
The first-ever $2.5 million state investment in access to counsel for tenants facing eviction.
$2.5 million to create a Local Government Emergency Housing Support program for cities and counties.
Today’s lawsuit is part of the Governor’s ongoing effort to protect Pennsylvanians, uphold the law, and ensure the federal government keeps its commitments.
This action is being filed by a coalition led by Washington and that also includes New York, Rhode Island, Colorado, Delaware, Maine, Massachusetts, New Jersey, Oregon, Arizona, California, Connecticut, Illinois, Michigan, Minnesota, North Carolina, Vermont, Wisconsin, Washington D.C., and Kentucky Governor Andy Beshear.