The Department of Housing and Urban Development (HUD) can proceed with changes to funding for programs for homeless people, a federal appeals court ruled on Wednesday.
HUD has been shifting funding from placing homeless people in permanent housing with no conditions, which it says has failed to stem the rising number of homeless people, to other priorities, such as housing combined with support.
As part of that shift, HUD in June said it was setting aside $1.3 billion for services focused on transitional housing and supportive services.
Nonprofits and states, some of which were in danger of losing funding, sued, arguing the change violated federal law in part because the agency did not formally notify the public and accept public comments before finalizing the change. …