On November 26, 2025, Maryland Attorney General Anthony G. Brown and officials from 20 other states filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD). The lawsuit challenges recent changes to HUD’s Continuum of Care grant program, which funds housing and services for people experiencing homelessness or housing insecurity. The states argue that the changes could affect housing stability for many Americans, including more than 4,000 Maryland residents.
The lawsuit claims that HUD’s new rules will reduce funding for permanent housing and project renewals. Previously, about 90% of Continuum of Care funds supported permanent housing. Under the new policy, this amount will be reduced by two-thirds for grants starting in 2026. The guaranteed funding for project renewals will also drop from 90% to 30%, which may make it harder for providers to maintain housing for those in need.
Attorney General Brown stated that the changes could lead to significant funding cuts in Maryland. The Maryland Department of Housing and Community Development estimates that the 30% cap on permanent housing funding will result in over $45 million in cuts statewide. This could affect more than 4,000 people who rely on this assistance…