Seattle Homelessness Programs Get Temporary Reprieve as Anti-Trump Lawsuit Moves Forward
The US Department of Housing and Urban Development wants to cut funds for permanent housing of all types—and impose its anti-trans, anti-DEI ideological requirements on providers.
By Erica C. Barnett
Seattle’s permanent supportive housing programs got a temporary reprieve from federal funding cuts last week, when the US Department of Housing and Urban Development walked back its new rules limiting the kind of housing programs that are eligible for federal assistance.
HUD abruptly decided to change how it funds local homelessness programs in November, imposing new restrictions on agencies like the King County Regional Homelessness Authority in the middle of a two-year funding cycle. Among other changes, the new rules would have eliminated most federal funding for permanent housing and required nonprofits to make ideological commitments against trans people and racial equity.
In the Seattle area, more than 90 percent of funds currently go to permanent housing, so the abrupt, midstream change threatened to cause chaos in Seattle’s housing system and put thousands of people on the street.
The National Alliance to End Homelessness, along with King County and other jurisdictions, sued HUD over the changes, and got a preliminary injunction from US District Judge Mary McElroy of Rhode Island in December, which initially prompted HUD to announce it was holding off off on the funding process indefinitely, leaving agencies that rely on federal funding in limbo.
Last week, though, HUD changed course, announcing it will operate under existing rules for this year’s funding applications as long as that injunction remains in place. The announcement doesn’t mean local agencies will get funds, but it does allow them to continue applying for federal dollars under pre-Trump rules.
The reprieve doesn’t exactly have local agencies and housing advocates breathing a sigh of relief. For one thing, even if Judge McElroy issues a permanent injunction (which could happen in early February), HUD could still challenge it, putting the case on a fast track to a Trump-friendly Supreme Court.
Even if federal funding for homelessness comes through as usual this year, experts who spoke to PubliCola said they expect the 2027 federal funding application to have the same restrictions as the one that’s currently being challenged in court, meaning that even in the best-case scenario, housing providers and the local governments that help fund them have just one extra year to figure out how to stay afloat without the kind of federal funding they’ve always relied on.
“For supportive housing of the kind we do, this money is a goner,” said Daniel Malone, head of the Downtown Emergency Service Center—the region’s largest recipient of HUD homelessness dollars. “The question is whether it’s now or later.” Malone is hoping the injunction stands, because at least “that kicks it out to the latter part of 2027 before it becomes a financial crisis.”
Last Thursday, about 40 local leaders, including representatives from advocacy groups, providers, Mayor Katie Wilson’s office, and all nine council offices, met to discuss the federal funding situation, including the current uncertainty about next year.
“We’re trying to pull together a strategy for how we move forward” in the absence of federal funding in 2027 and beyond, said Seattle City Councilmember Alexis Mercedes Rinck, who now chairs the council’s human service committee. “Part of the long-term sustainability conversation will be, how do we restructure and prioritize local dollars?” This includes the King County Regional Homelessness Authority’s annual budget, which comes primarily from Seattle and King County, Rinck said. The city and county are both facing tens of millions in projected budget deficits starting in 2027 and 2028, respectively.
Not sure it's even a temporary reprieve. The money for this year will only come from providers submitting their requests through the KCRHA, and then gamble on being reimbursed for the services they provide, because that's how it works. How many providers can afford to fund the services, not being certain they will EVER get paid? The federal government is now thoroughly obsessed with planning for regime change in an increasing number of countries; what American people need is not their priority.