DOVER, Del. — Delaware Attorney General Kathy Jennings says a federal judge has blocked changes to U.S. Department of Housing and Urban Development funding that the Delaware Department of Justice says could have affected permanent housing for more than 600 Delawareans.
Jennings joined a multistate coalition challenging changes to HUD’s 2026 Continuum of Care grant program, which provides federal funding for homelessness services and housing programs.
According to the Delaware Department of Justice, HUD proposed a $1.3 billion set-aside for new projects that prioritized programs including transitional housing. The coalition argued the change would have effectively limited funding available for permanent housing projects.
The Delaware Department of Justice says a federal judge last week granted key portions of the coalition’s motion for summary judgment and ruled that the set-aside was unlawful and could not be implemented.
State officials say more than 600 Delawareans could have lost their housing if the changes had taken effect.
The Delaware Department of Justice says the ruling is the coalition’s second court victory this summer involving the Continuum of Care program.
In June, the coalition successfully challenged separate HUD funding conditions that included a cap on the amount of Continuum of Care funding that could support permanent supportive housing. State officials say that challenge protected housing for more than 500 Delawareans.
According to the Delaware Department of Justice, HUD has historically supported permanent housing programs and the Housing First model, which prioritizes placing people in permanent housing without first requiring conditions such as sobriety or a minimum income.
Jennings said Delaware will continue challenging federal actions that threaten funding for permanent housing programs.
