LOS ANGELES, CA — Today, the U.S. Court of Appeals for the Ninth Circuit largely denied the federal government’s motion for a stay pending appeal in Los Angeles Homeless Services Authority et al. v. Trump et al. (Case No. 26-5367). The order dissolves the administrative stay issued on September 10, 2026, preserving key provisions of the district court’s preliminary injunction to protect regional homeless services and funding stability.
The Ninth Circuit held that the U.S. Department of Housing and Urban Development (HUD) failed to show a likelihood of success on the merits regarding its June 2026 suspension of LAHSA, emphasizing that the timing of HUD’s action threatened to severely cripple the region’s ability to apply for critical federal resources.
Key Elements Upheld by the Ninth Circuit:
-
Execution and Release of FY2025 Grants: The court affirmed that HUD cannot withhold approved FY2025 grant funding. HUD is ordered to countersign the FY2025 agreements and release funds according to standard statutory schedules.
-
Preserving the FY2026 Application Process: Acknowledging the fast-approaching October 14, 2026 application deadline, the panel affirmed that attempting to force individual providers into an unworkable "Direct-to-HUD" portal would cause imminent, irreparable harm to vulnerable populations and local programs. Maintaining LAHSA as Collaborative Applicant preserves the status quo.
-
Reinstatement of LAHSA Across Critical System Roles: The court denied HUD’s stay request regarding the district court’s order reinstating LAHSA as Collaborative Applicant, Homeless Management Information Systems (HMIS) Lead, Coordinated Entry System (CES) Coordinator, and Point-in-Time (PIT) Count Administrator.
-
FY2026 Funding Timeline Clarification: The court granted a stay only to the narrow extent that the district court's order could be interpreted as requiring an immediate, premature disbursal of approximately $239 million before those funds would otherwise be due, directing HUD to proceed under the standard 2026 Appropriations Act schedule.
-
FY2027 System Planning: The court affirmed the requirement that HUD formally respond to the evaluation of the applicant pool for CoC roles for FY2027 as a result of the LA CoC’s current RFQ process.
Statements from LAHSA Leadership:
“This ruling provides greater stability at an important moment for Los Angeles. For the thousands of people experiencing homelessness or working to rebuild their lives, the systems and funding that connect them to housing and services cannot simply stop. Today’s decision allows that work to continue while the larger issues are resolved. Most importantly, it gives our region the opportunity to keep people housed, help more people find a path home, and give people hope.”
— Stephanie Graves, Chair of the LAHSA Commission
“Our priority has always been keeping frontline services running and ensuring that federal funding reaches our service providers. With the October 14 CoC NOFO deadline approaching, LAHSA is moving at full speed to finalize our region’s consolidated FY2026 application. We look forward to working with HUD to ensure approved FY2025 funds are promptly executed and disbursed. In the meantime, our core work continues—maintaining the data and entry systems providers rely on every day and preparing for January’s 2027 PIT Count.”
— Gita O'Neill, Interim Chief Executive Officer of LAHSA
Oral argument on the merits of HUD's appeal of the preliminary injunction is scheduled for October 19, 2026, at 10:00 a.m. PST at the Richard H. Chambers Courthouse in Pasadena, California.
