A federal judge ruled this week that the Trump administration's attempt to rewrite the rules governing nearly $3.9 billion in Continuum of Care grants for permanent supportive housing was unlawful. The decision is a major relief for Atlanta's homeless services network.

At stake for Atlanta was $14.5 million in federal funding that keeps 844 formerly homeless households housed. Partner for Home, the city's homeless services liaison, uses the HUD grants to fund permanent housing and supportive services citywide.

HUD had issued an edict last September that it would not renew grant funding for programs following the long-accepted Housing First approach, which provides unhoused people with stable housing so they can address sobriety, mental health, and self-sufficiency. Instead, HUD wanted to redirect the funds toward programs requiring people to get addiction or mental health treatment before receiving housing.

U.S. District Judge Mary McElroy of Rhode Island ruled March 31 that HUD violated the Administrative Procedure Act by failing to provide a reasoned basis for its overhaul of funding criteria set by Congress. She called the sudden policy shift a "slapdash" effort.

The ruling means Atlanta's existing Housing First programs can continue operating with federal support, at least for now. The city's permanent supportive housing model has been credited with reducing chronic homelessness in the metro area over the past several years.