Newsom Sues Trump Administration Over Cuts to Homeless Housing Funding
SACRAMENTO, November 25, 2025 (CALIFORNIA NEWS TODAY) — The State of California has filed a lawsuit against the federal government challenging recently announced funding changes affecting permanent homeless housing programs. The lawsuit was filed by Governor Gavin Newsom and Attorney General Rob Bonta in coordination with a multistate coalition including Washington, alleging that the federal action will remove financial support from housing initiatives currently serving vulnerable populations across the state.
The legal challenge follows new provisions released by the U.S. Department of Housing and Urban Development (HUD) that would impose funding caps limiting Continuum of Care (CoC) programs to using no more than 30 percent of allocated funds for permanent supportive housing and rapid rehousing. Last year, California CoCs received more than $683 million in funding, with approximately 90 percent directed toward permanent housing projects.
According to the lawsuit, the reductions would affect housing access for older adults, families with children, veterans, people with disabilities, transition-aged youth, and individuals served through state programs including Medi-Cal, CalFresh, and CalWORKs. The filing argues that the funding changes lack authorization from Congress and disrupt ongoing commitments mid-cycle.
“While Donald Trump is busy hosting parties and showing off his gold-plated decor, Americans are worried about groceries, rent, and basic stability. Most families can’t fall back on inherited wealth or walk away from failure through bankruptcy — but they’re the ones stuck paying for his chaos and incompetence. For all Trump’s talk about others feeding at the trough, there’s really only one ‘piggy’ here — and he’ll find it in his own gilded mirror,” said Newsom.
“Under both Democratic and Republican presidents, HUD’s Continuum of Care Program has helped states, local governments, and nonprofit organizations combat homelessness and provide safe, stable housing to our most vulnerable residents. This program has proven to be effective at getting Americans off the streets, yet the Trump Administration is now attempting to illegally slash its funding. As a result, for the 47th time in 44 weeks, I’m taking President Trump to court. Those caring for our unhoused neighbors need the federal government’s continued support. Absent judicial intervention, the Trump Administration’s actions would only worsen the homelessness crisis,” said Bonta.
“Permanent and supportive housing is central to addressing homelessness and helping bring stability into people’s lives. The federal government’s sudden and cruel changes to how nonprofits and community organizations can access funding threatens to undo years of progress and puts more than 170,000 people nationwide at risk. Here in California, we’re pushing back on this attempt to deprive vulnerable Californians of a place to call home,” said Business, Consumer Services and Housing Secretary Tomiquia Moss.
“The Trump Administration’s proposed cuts would worsen the homelessness crisis by pulling funding from permanent housing and putting tens of thousands of Californians at risk. This would undo years of progress and destabilize our neighbors who finally found a safe place to live and stability. It’s harmful policy that will lead to devastating health outcomes. California will continue championing permanent, person-centered solutions that strengthen, not weaken, our response to homelessness,” said California Health and Human Services Secretary Kim Johnson.
The state referenced ongoing efforts involving mental health treatment expansion, housing development streamlining, encampment response models, and conservatorship reforms as part of its broader homelessness strategy. Data cited by the administration states that California limited homelessness growth to 3 percent in 2024, compared to a national increase of over 18 percent.
For more information, visit www.gov.ca.gov.
Source: California Governor’s Office
