Federal grant-conditions litigation (RICADV v. Kennedy)
A coalition of domestic violence, housing, and homelessness organizations is challenging conditions the administration attached to HHS and HUD grants; a Rhode Island federal judge rejected the conditions in August 2026.
A Ninth Circuit panel in San Francisco heard argument Tuesday on HUD's request for a stay pending appeal of Judge David O. Carter's preliminary injunction, which blocked HUD's suspension of $239 million in funding for the Los Angeles Homeless Services Authority. Judge Roopali Desai called HUD's position on the September 30 collaborative-applicant deadline a "gotcha" argument, while Judge Ryan Nelson said Congress provided for direct applications to HUD by service providers. Judge Jacqueline Nguyen said the panel would try to rule as speedily as possible given the September 30 application deadline.
Carter's August injunction warned the suspension would displace more than 11,000 unhoused people.
LAist · on unexecuted FY2025 Continuum of Care renewal grant agreements
LAist reported that HUD has not executed more than 1,300 FY2025 Continuum of Care renewal grant agreements nationally — about one in five — as of September 14, according to court documents, with the delays tied to HUD's legal dispute with the Los Angeles Homeless Services Authority over grant conditions. In Los Angeles, the delays are expected to affect more than 50 local service providers, and dozens of grants totaling nearly $65 million could be affected by the end of the year. HUD told LAist it is not currently required to execute the agreements after the Ninth Circuit issued an emergency stay pending its ruling on HUD's appeal.
The Ninth Circuit stayed Judge David O. Carter's August order directing HUD to execute the agreements; the court is scheduled to hear arguments on HUD's appeal September 22.
The San Francisco Standard · on Ninth Circuit ruling on HUD and DOT grant conditions
A three-judge panel of the U.S. Court of Appeals for the Ninth Circuit on August 25 upheld an injunction blocking conditions HUD and the Department of Transportation attached to already-awarded grants, which required recipients to certify they run no programs violating federal anti-discrimination law, promise not to spend funds promoting "gender ideology" or elective abortion, and verify recipients' immigration status. Writing for the panel, Judge M. Margaret McKeown found most conditions "far exceed the limited authority set out by Congress and superimpose onerous requirements well after the government already awarded grant funds"; the panel held Title VI does permit nondiscrimination assurances and remanded for the district court to narrow its injunction accordingly, with Judge Patrick Bumatay dissenting. San Francisco's city attorney said the ruling protects roughly $240 million in annual HUD funding to the city, including about $50 million for homelessness services, plus some $2 billion in DOT funds.
U.S. District Judge Barbara Rothstein in Seattle blocked the conditions in June 2025; the administration appealed that order.
A federal judge in the District of Rhode Island rejected grant conditions the administration imposed on federal grants administered by HHS and HUD in Rhode Island Coalition Against Domestic Violence v. Kennedy. The plaintiff coalition of domestic violence, sexual assault, housing, youth, and homelessness organizations had sued to block conditions targeting diversity, equity, and inclusion programs and transgender rights; Democracy Forward said the decision follows an earlier order preliminarily blocking the restrictions.
The case was filed July 21, 2025, in the U.S. District Court for the District of Rhode Island, the same court that set aside HUD's FY2026 CoC NOFO on August 7.