DOVER, DELAWARE – Delaware is challenging the federal government over new rules it says will undermine housing programs for people experiencing homelessness, joining a lawsuit filed by more than twenty plaintiffs nationwide.
According to information released by Delaware officials on the state’s website, the complaint supported by Attorney General Kathy Jennings argues the U.S. Department of Housing and Urban Development is reshaping its Continuum of Care grant program without authorization from Congress. State leaders say the agency is attempting to limit spending on permanent housing, cut funding for renewal projects, and impose new terms on service providers. The state says the changes would penalize localities that do not enforce strict anti-homeless measures and force grantees to adopt policies that contradict previous federal guidance. Delaware leaders contend that the new conditions stand in contrast to HUD’s long-standing support of Housing First strategies, which provide stable housing without prerequisites.
Jennings criticized the shift, calling the grant program a life saving measure. Governor John Carney also supported the lawsuit, saying he backs efforts to protect housing access for Delaware residents as the state works to expand assistance through its housing agencies. Matthew Heckles, Director of the Delaware State Housing Authority, said the proposed federal policies could have severe consequences for residents seeking stability. State officials estimate the changes would cut Delaware’s Continuum of Care funding by more than $8 million starting in 2026, a reduction they say the state cannot offset. Delaware argues the revised rules could force service providers to choose who receives help, threatening long term housing for vulnerable residents.
According to the state, the lawsuit claims HUD introduced the changes without required rulemaking and without congressional approval. Delaware joins attorneys general from nineteen other states, the District of Columbia, and the governors of Kentucky and Pennsylvania in the legal challenge.
(photo: Delaware.gov)