Gov. Josh Shapiro joined a multistate lawsuit against the Trump administration, claiming HUD’s policy changes threaten over $100 million in local funding.

HARRISBURG, Pa. — Pennsylvania is once again going to court against the Trump administration, this time in a multistate lawsuit that challenges recent policy changes by the U.S. Department of Housing and Urban Development (HUD).

The lawsuit continues a trend of lawsuits filed by Shapiro against the administration that included suits challenging cuts to the Supplemental Nutrition Assistance Program (SNAP) to appealing the cancellation of farm funding. 

This latest lawsuit — which was filed on Tuesday — lists Pa. Gov. Josh Shapiro as a plaintiff. The filing alleges that HUD’s overhauling of the Continuum of Care (CoC) program is “abrupt and unlawful,” and would threaten over $100 million in funding to Pa. alone. 

“For decades, these housing programs have helped vulnerable people — families, seniors, veterans, people with disabilities, and LGTBQ+ Pennsylvanians — have access to safe, affordable housing,” Shapiro said. 

The Congressionally-created program — which state officials said is the primary federal initiative supporting those facing homelessness — provides funding to programs supporting housing projects, rental assistance and other supportive services. 

According to a statement released by Shapiro’s office, Pa. received $177 million in CoC funding in 2024 aimed at helping Pennsylvanians secure safe housing. 

“Now, the Trump Administration is trying to abruptly dismantle the very system Congress created to fight homelessness,” Shapiro said. “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.”

The plaintiffs in the lawsuit — which in addition to Shapiro includes 18 states, Washington D.C., and Kentucky Gov. Andy Beshear (D) — argue that HUD enacted changes to the Continuum of Care program that contradict the department’s long-standing policies focused on providing housing as a first-priority. 

Those changes, according to the lawsuit, include capping funding for permanent housing at 30% of total funds, down from 90% and new requirements that may eliminate funding for organizations that serve LGBTQ+ populations.

HUD Secretary Scott Turner called the CoC program — which was created by HUD in 1994 and codified into law in 2009 — a “Biden-era slush fund that fueled the homelessness crisis, shut out faith-based providers simply because of their values, and incentivized never-ending government dependency.”

According to Shapiro’s office, the changes risk the cancellation of hundreds of projects across the Commonwealth. Those cancellations, they argue, could force thousands of Pennsylvanians back into homelessness. 

The 2025–26 state budget passed earlier this month includes a $5 million increase for the state Homeless Assistance Program, $2.5 million for access to legal counsel for tenants facing eviction and $2.5 million for a new Local Government Emergency Housing Support program. Â