Gov. Evers says Wisconsin has joined multi-state lawsuit to block cuts to homelessness programs

Nov. 29, 2025

MADISON, Wis. — Gov. Tony Evers said Friday that Wisconsin is joining a multi-state lawsuit to stop the Trump administration from slashing funding for federal homelessness prevention programs, warning the move could force thousands of residents out of housing during the coldest months of the year.

The lawsuit challenges changes to the U.S. Department of Housing and Urban Development’s Continuum of Care program, which provides billions of dollars annually to state and local agencies for housing and services for people experiencing homelessness. Under a new funding notice, HUD plans to cap permanent housing programs at 30%, down from about 90%, and require providers to overhaul programs starting in January 2026.

“Homelessness is a pervasive issue all across our state and nation, and it is unconscionable to even consider kicking thousands of kids, families, seniors, veterans, and more out of their housing during the coldest months of the year,” said Evers. “These programs are in place to ensure we are taking a multi-faceted approach to addressing homelessness in the U.S., and stripping resources from shelters that are already at capacity and stalling funding for programs that help keep folks housed and warm during the winter months is not the answer.”

State officials say the changes could cancel thousands of projects and leave no time to develop alternatives. According to Wisconsin’s Interagency Council on Homelessness, the January 2024 point-in-time count recorded 5,037 people in shelters or unsheltered statewide, the highest since 2017.

Continuum of Care Counties in Western Wisconsin

• Coulee Coalition: Crawford, La Crosse, Monroe, Vernon
• Dairyland Coalition: Buffalo, Eau Claire, Jackson, Trempealeau
• West Central Coalition: Barron, Dunn, Pepin, Pierce, Polk, St. Croix

Western Wisconsin Programs at Risk

• Rapid rehousing and permanent supportive housing projects run by these agencies are among those threatened. For example:
  • Couleecap Housing First programs and Western Dairyland PSH projects are funded through the CoC and could lose eligibility under the new HUD rules.
  • West CAP operates permanent supportive housing and rapid rehousing programs that would be impacted by the 30% cap on permanent housing.

The impact would be felt across Wisconsin’s four HUD-designated regions:

• Dane County: 11 projects worth $5 million face cuts, with more than $3 million at risk. At least 110 households could lose housing.
• Milwaukee: More than 900 individuals, including 770 children, could be displaced. The region invests $10.5 million annually in rent assistance.
• Balance of State: 37 projects worth $21.6 million could see $14 million eliminated, affecting at least 606 households, most with children.
• Racine: Also faces significant reductions under the new rules.

Programs serving survivors of domestic violence, people with disabilities, and seniors are among those most at risk. Officials warn that 229 households in domestic violence rapid rehousing will lose support by September 2026.

“These supports prevent hospitalizations, nursing-home placements, and emergency service overuse, saving taxpayers money,” said Evers. “We cannot let this cruelty prevail. We’re going to fight this with every tool and power we have to keep folks safe.”