The U.S. 9th Circuit Court of Appeals ruled on September 25, 2026 that the Trump administration may not dictate the application process for federal housing money intended for Los Angeles homeless service organizations. The court ordered that the funds, amounting to millions of dollars, be made available to the groups without the administration’s imposed restrictions.
The decision came after the administration attempted to limit the ways in which local service providers could seek the federal assistance. Under the contested policy, organizations would have been required to follow a specific application format and adhere to criteria set by the federal government. The appeals court rejected that approach, stating that the agencies could not impose such controls on how the money is accessed.
Los Angeles homeless service organizations, which rely on federal housing dollars to operate shelters, transitional housing, and supportive services, are now permitted to apply for the funds using their existing processes. The court’s order ensures that the millions of dollars earmarked for housing assistance remain accessible, allowing providers to continue their work without additional administrative hurdles.
The ruling reflects a broader legal dispute over the extent of federal authority to manage the distribution of disaster and housing relief funds. While the case focused on Los Angeles, the court’s language indicated that similar restrictions could be challenged in other jurisdictions if they attempt to impose comparable controls.
The 9th Circuit’s decision restores the status quo that existed before the Trump administration’s policy change. It affirms that homeless service organizations retain the ability to pursue federal housing assistance according to their established procedures, and that the allocated funds will be released without the previously proposed limitations.