A federal judge just handed President Trump's Department of Housing and Urban Development its third courtroom defeat this year over efforts to reshape how billions in homelessness funding gets distributed nationwide. HUD Secretary Scott Turner has repeatedly criticized the existing system for prioritizing "Housing First" policies, which place people into housing without requiring sobriety or treatment as a precondition. "We are stopping the Biden-era slush fund that fueled the homelessness crisis," Turner previously said, defending the planned changes. Mary Frances Kenion, chief equity officer for the National Alliance to End Homelessness, noted this marks the second time her organization has had to sue over an unlawful funding notice from the agency. A December 2025 court order temporarily blocked those changes, forcing HUD to reinstate the original funding terms in January.