Appeals Court Upholds Block on Homeless Grants Changes

A federal appeals court in Boston ruled on Wednesday that the Trump administration cannot impose new restrictions on billions of dollars in grants for homeless services, upholding a lower court's block on changes to a longstanding federal housing program.

The 1st U.S. Circuit Court of Appeals denied the administration's request to pause an injunction issued by U.S. District Judge Mary McElroy in Providence, Rhode Island. The decision preserves funding under the Continuum of Care program, which allocates about $4 billion annually to states, local governments and nonprofits for permanent housing and support services targeting homeless individuals, including veterans, families and those with disabilities. The program, established in 1987, has emphasized a housing-first model that provides stable shelter without requiring preconditions such as employment or sobriety, alongside services like job training, mental health care and transportation.

The administration sought to overhaul the program's criteria last fall, redirecting funds toward transitional housing that includes requirements for work, treatment and other conditions. Officials argued this would promote self-sufficiency and...