Governor Andy Beshear announced Tuesday that a federal judge has ruled in favor of Kentucky, 19 other states and the District of Columbia, ordering the Trump administration to restore federal housing funds that had been withheld by the U.S. Department of Housing and Urban Development.
More than $21 million in congressionally approved funding will now be released for housing programs across Kentucky, supporting veterans, seniors, families with children and people with disabilities.
The funding is expected to protect housing for 700 households, impacting about 1,200 Kentuckians.
Beshear said the ruling ensures the state can continue efforts to prevent homelessness, emphasizing that blocking approved housing funds would have put thousands of Kentuckians at risk of losing their homes.
The governor joined the lawsuit in November after HUD proposed changes to the Continuum of Care (CoC) program, which provides housing assistance nationwide. The changes would have capped permanent supportive housing funding at 30% and forced states to re-apply for funds already approved and awarded in 2024.
The judge’s ruling eliminates that requirement, allowing the funds to move forward as planned.
Kentucky had faced the potential loss of up to 70% of more than $15 million for permanent supportive housing across 118 of the state’s 120 counties, along with the risk of losing more than $20 million in additional rental and supportive assistance funding.
Other states involved in the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and Wisconsin, as well as the District of Columbia.
