Michigan Attorney General Dana Nessel announced on Apr. 2 that a federal appeals court has rejected the Trump administration’s request to impose new restrictions on housing grant funding, which could have affected thousands of people nationwide. The ruling follows a lawsuit filed by Nessel and a multistate coalition against the U.S. Department of Housing and Urban Development (HUD) over changes to its Continuum of Care program, the largest source of federal homelessness assistance.
The case is significant because it concerns access to housing for vulnerable populations who rely on these grants for stability. According to the Michigan Department of Attorney General’s official website, the department advances social efforts through actions supporting vulnerable populations.
A preliminary injunction was issued in December by U.S. District Court Judge Mary McElroy, preventing HUD from enforcing what were described as unlawful conditions that would limit permanent housing funding. On April 1, an appeals court upheld this injunction, agreeing with arguments made by Nessel and other state attorneys general that allowing HUD’s restrictions would be “immediately destabilizing and disastrous for their constituents.” Last year alone, Michigan received more than $100 million through this grant program; proposed changes could have put an estimated 7,000 households—including about 2,000 families with children—at risk of losing their homes.
“While the federal government felt comfortable gambling with the lives of thousands of Americans by forcing them onto the street, I am relieved that the Court has once again upheld the rule of law,” said Attorney General Nessel. “I will continue to defend vulnerable Michiganders from heartless, unlawful conditions that weaponize federal funding and pull the rug out from under them.”
The Michigan Department of Attorney General focuses on serving residents through public service initiatives and protection according to its official website. The department also exercises authority throughout Michigan to safeguard residents according to its official website.
Dana Nessel serves as Michigan’s 54th attorney general according to information provided. The office influenced policy in recent years by drafting legislation such as the Clean Slate law in 2019 for expungement opportunities as reported on its website.
Looking ahead, observers say this ruling may influence future policy decisions regarding how federal agencies set conditions for vital assistance programs.