HUD Continuum of Care Lawsuit

At a glance

What: Cambridge is a plaintiff in a federal lawsuit challenging changes HUD sought to make to the Continuum of Care homelessness grants. The City Manager's regular federal update (the 18th and last of 2025) covered it on December 22, 2025.
Where it stands: a federal judge issued a preliminary injunction on Friday, December 19, 2025 against the changes. HUD had withdrawn its 2025 Notice of Funding Opportunity (NOFO) under 90 minutes before a December 8 hearing, then reissued a 100-plus page version that the City believes is substantially the same and therefore covered by the injunction. A written order was expected the next day.
Next: possible appeal; a 2026 NOFO process could begin in June 2026 and affect 2027 funding; Congress's funding deadline was January 30, 2026 with a risk of another partial shutdown.

The changes would have cut guaranteed funding for permanent supportive housing from 90 percent year to year to 30 percent, endangering households already stably housed. The injunction rested on process, not policy, so a better-run future change could still cut funding with a lower chance of legal challenge.
Best case per City Manager Huang: reversion to the 2024 NOFO and unchanged funding, giving about a year of runway and protecting FY27 funding. City Solicitor Bayer said the federal government might appeal the injunction right after the holidays and the Council would be updated.
Siddiqui thanked the Law Department and said the Council had been clear it wants the City to join cases and briefs; Nolan thanked staff. Placed on file 9-0.

Federal update given; placed on file 9-0.