King County this week joined a coalition of local governments and nonprofit organizations in a federal lawsuit challenging what it describes as unlawful restrictions placed by the Trump administration on funding for permanent supportive housing and homelessness services.

The lawsuit, filed Monday, Dec. 1, 2025 in the U.S. District Court for Rhode Island, argues that the administration’s Department of Housing and Urban Development has imposed unreasonable conditions on the Continuum of Care grant program, a major source of funding for long term housing for people experiencing homelessness. King County is one of seven local governments and four nonprofit groups participating in the suit.

According to King County, existing HUD funded permanent supportive housing programs could lose renewal grants, potentially affecting an estimated 4,500 households. The county said new rules dramatically lower funding caps for permanent supportive housing and require grantees to prioritize outreach services, temporary housing, abstinence from substances, and mandatory behavioral health treatment.

New grant awards will not be issued until May 2026, while previous grants expire in January, creating what the county described as a potential funding gap that could halt or close programs.

“The housing crisis demands coordinated action to break the cycle and bring more people inside, especially as we enter the winter months,” King County Executive Girmay Zahilay said. “These unlawful actions by the administration will only worsen the crisis, causing more homelessness and devastating communities across our region.”

Zahilay said King County is joining other jurisdictions “to protect these federal investments, maintain progress to create and operate more affordable housing, and prevent more people from living unsheltered.” He said 95 percent of county households in permanent supportive housing remained housed last year and added, “We will do everything in our power to keep people housed and make progress on ending the homelessness crisis.”

The county said the new funding rules violate federal law and would undermine existing strategies by limiting the ability to renew projects. It also cited vague prohibitions on projects with “racial preferences,” and said HUD could deny funding based on media reports, public complaints, or an organization’s “history of subsidizing activities that conflict” with the grant announcement.

State Rep. Nicole Macri of Seattle said the new conditions would shift costs “to shelters, emergency rooms, jails, and our streets,” and would affect thousands of families. “I’m proud to join other elected officials in standing up for our neighbors and fighting for the solutions we know work,” Macri said.

King County Councilmember Teresa Mosqueda said permanent supportive housing has long been the foundation of the local homelessness response. She called the federal requirements “cruel conditionalities” that threaten local programs.

“This lawsuit is what leadership looks like given our community and the supportive housing system we’ve spent years building is under direct threat,” Mosqueda said.

King County said Washington Attorney General Nick Brown filed a related lawsuit last week, alleging that HUD reduced funding for permanent housing and placed unlawful conditions on access to remaining funds.

King County joins a national coalition that includes Santa Clara County, San Francisco, Boston, Nashville, and Tucson.