Appeals court rejects HUD homelessness overhaul saying it would be "disastrous"

An appeals court has rejected a Department of Housing and Urban Development proposal to redirect funding away from permanent supportive housing toward programs requiring sobriety and other conditions. Housing advocates argued the shift would push many homeless individuals back onto the streets by imposing restrictions that permanent housing models do not. The court ruled the overhaul would be "disastrous," blocking the agency's plan to reallocate resources. HUD had sought to fundamentally change how federal homelessness funds are spent, but the judicial rejection prevents that restructuring from moving forward.