A federal appeals court has rejected a bid by the U.S. Department of Housing and Urban Development to cut funding from programs that provide housing for more than 1,000 people in Maine.
Maine joined a coalition of 21 states last year to sue the federal agency after HUD cut its funding for the Continuum of Care program, Maine’s largest source for federal homelessness assistance funding.
HUD said at the time that the policy change “restores accountability to homelessness programs and promotes self-sufficiency among vulnerable Americans.”
The change was part of the Trump administration’s plan to divert funding away from permanent supportive housing, which prioritizes getting people into housing first while also offering voluntary services, toward programs with work requirements or mandatory mental health and substance use treatment.
A federal district court judge in December sided with the states, granting a preliminary injunction against the change. HUD appealed the ruling, seeking a stay on the injunction.
In its rejection, the federal appeals court said dissolving the injunction “would result in wide-ranging and severe consequences as the litigation plays out,” and the damage would be difficult to reverse after the fact.
“A final judgment in the plaintiffs’ favor would offer little solace to those residents who may be forced into homelessness in the interim,” the court said.
