"Wrong and dangerous"; KY Governor joins lawsuit against Trump administration over housing cuts

Gov. Andy Beshear says the Trump administration is making "illegal and cruel" changes to federal housing programs that could push hundreds of Kentuckians into homelessness.

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This week Kentucky Governor Andy Beshear joined governors from 19 other states and the District of Columbia in a lawsuit challenging the Trump administration's decision to dramatically scale back support from the U.S. Department of Housing and Urban Development.

According to Beshear, the policy changes would eliminate more than $15 million in federal funding to Kentucky, putting 700 households at risk of returning to homelessness and threatening housing for 1,200 Kentuckians.

"These illegal and cruel policy changes will cause more people- like veterans and families- to go homeless and make our communities less safe, with more people forced to live on the streets," Beshear said. "We should be helping people get back on their feet through a safe place to call home, not barring them from any chance of success."

The governor says the changes target the Continuum of Care program, which directs federal dollars to keep families with children, seniors, veterans and disabled people housed. Under the new policy, Beshear says states would face a 30% cap on funding for permanent supportive housing projects and would have to reapply for money that Congress already approved and awarded in 2024.

Kentucky had been expecting to receive over $21 million total to keep people housed and provide homeless services, according to Beshear. With the 30% cap, he says the state would lose 70% of the more than $15 million currently approved that supports permanent supportive housing in 118 of Kentucky's 120 counties.

Beshear says the cap would also impact more than $20 million in federal funding for rental assistance and supportive services for homeless Kentuckians.

Eight grants currently awarded specifically support Permanent Supportive Housing, serving around 324 Kentuckians, including 69 survivors of domestic violence and 205 individuals with at least one disability, according to the governor.

Amanda Couch, CEO of Welcome House Inc., which provides housing services across Northern Kentucky, described what's at stake if the funding ends.

"In 2025, Welcome House has already served 99 households, 122 adults and 69 children through our two Rapid Re-Housing grants and six Permanent Supportive Housing programs," Couch said. "These grants, totaling nearly $2.4 million, are the backbone of housing stability across multiple rural regions in the Kentucky Balance of State."

Couch said every number represents a real family- parents trying to keep their children safe, individuals living with chronic health conditions, and people who need a stable home to begin rebuilding.

"If this funding disappears, these households will be pushed back into homelessness, and communities will lose the very programs proven to reduce crisis system costs and improve long-term outcomes," she said.

Beshear says none of these requirements received Congressional approval, and they contradict previous guidance.

The lawsuit includes Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, Wisconsin and the District of Columbia.

Beshear called the policy changes "wrong and dangerous," saying they "will set our commonwealth and country back."

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