Appeals court rejects HUD restrictions on housing grants after Arizona-led lawsuit

Kris Mayes, Attorney General of Arizona
Kris Mayes, Attorney General of Arizona
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A federal appeals court rejected the U.S. Department of Housing and Urban Development’s request to impose new restrictions on grant funding for homelessness assistance, Arizona Attorney General Kris Mayes announced on Apr. 2.

The ruling affects tens of thousands of formerly homeless people who rely on the Continuum of Care program, which is the largest source of federal homelessness assistance funding. The case highlights concerns over abrupt policy changes that could disrupt access to stable housing for vulnerable individuals.

Attorney General Mayes and a coalition of states sued HUD in November after it changed rules governing how much grant money could be used for permanent housing and added new conditions to accessing funds. A lower court had already issued an injunction against HUD’s actions, stating they would cause irreparable harm. On April 1, the appeals court upheld this decision, finding that moving forward with HUD’s planned restrictions would be “immediately destabilizing and disastrous for their constituents.”

“The federal government has no right to gut housing assistance programs that real people depend on to keep a roof over their heads,” said Attorney General Mayes. “HUD cannot simply tear up the rules, slash promised funding, and leave vulnerable families and individuals to face homelessness. I am proud to have protected Arizonans by filing this case and winning.”

The Arizona Attorney General’s Office functions as the state’s primary legal entity, offering advocacy and protection for residents across Arizona according to its official website. It addresses issues such as elder abuse, civil rights violations, unsolved crimes through its cold case unit, participates in federal action lawsuits—including those related to fair housing—and supports accountability measures for social media companies according to its official website.

Kris Mayes serves as Arizona’s 27th attorney general and is noted as the first mother in state history to hold this position according to its official website. The office provides comprehensive legal services statewide according to its official website.

A copy of the appeals court ruling is available.



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