OAKLAND, Calif. — California Attorney General Rob Bonta announced April 20, 2026, a legal victory in a lawsuit challenging U.S. Department of Housing and Urban Development funding restrictions on the Continuum of Care grant program, according to a press release from the California Department of Justice.
In November 2025, Bonta, as part of a coalition of 19 attorneys general and two governors, filed a lawsuit against the Trump administration over proposed changes to Continuum of Care funding, the press release states.
The Continuum of Care program is the federal government’s primary source of funding for affordable housing and services for individuals at risk of or experiencing homelessness, according to the California Department of Justice.
In February 2026, the U.S. District Court for the District of Rhode Island granted a preliminary injunction blocking the funding restrictions from going into effect. The Trump administration later appealed the ruling to the U.S. Court of Appeals for the First Circuit, but the appeal was ultimately dropped, leaving the preliminary injunction in place, according to the press release.
“People experiencing housing insecurity or homelessness need the federal government’s continued support — not a rollback of assistance,” Bonta said in the statement.
The Continuum of Care program is committed to ending homelessness and provides housing resources for families, youth and people with disabilities, as outlined by HUD.
Funding for permanent housing would be cut in half and could put 170,000 people at risk of homelessness, as reported by Politico.
While the court’s ruling blocked the funding restrictions, the preliminary injunction remains a temporary measure as the case continues, according to the California Department of Justice.
HUD has tried to reduce grant funds, penalize housing providers and disadvantage programs that address mental disabilities and substance use disorders, which goes against the explicit intent of Congress and HUD’s previous guidance, as stated in the press release.
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