HUD housing grants stalled as administration conditions aid on gender ideology and immigration policy

The Biden-era Continuum of Care (CoC) program is now being reshaped under the Trump administration, as the Department of Housing and Urban Development delays $3.6 billion in homelessness grants while enforcing controversial new conditions tied to the president’s executive orders, reports the Washington Blade.

The funding, statutorily due by 4 March 2025, supports nonprofits and local governments that serve veterans, youth, families, and other vulnerable populations. HUD’s grant agreements now include requirements that recipients disavow support for “gender ideology,” refrain from DEI efforts that could violate federal antidiscrimination laws, and avoid supporting policies that “shield illegal aliens from deportation.”

The delay has already pushed providers to draw on lines of credit to continue operations, according to a joint letter from Senate Democrats led by Sens. Adam Schiff (D-CA) and Tina Smith (D-MN). A subsequent letter—also joined by Senate Majority Leader Chuck Schumer—warned that the “deeply problematic” terms raise serious constitutional and statutory issues.

HUD initially pulled the contracts after a federal appeals court lifted a partial injunction on Trump’s executive order targeting DEI. On 19 March 2025, HUD began reissuing contracts excluding the DEI clause but retaining restrictions on serving transgender individuals and immigrants.

Advocates warn the delay and policy shifts disproportionately harm LGBTQ+ individuals and survivors of domestic violence, groups with elevated risk of homelessness and barriers to shelter access.