St. Vincent de Paul permanent housing

More than 300 people are living in 97 of these permanent supportive housing units at St. Vincent de Paul in Louisville. Under the federal cuts, the permanent units would be reduced to just 30. Dec. 8, 2025. (WDRB Photo)

LOUISVILLE, Ky. (WDRB) -- Federal funding for permanent housing programs will continue unchanged for now after a federal judge blocked new rules proposed by the U.S. Department of Housing and Urban Development.

The judge issued an order stopping the policy, which would have reshaped how billions of federal housing dollars are distributed nationwide. The proposed changes aimed to shift funding away from permanent housing programs and toward transitional housing initiatives.

Local governments and housing advocacy groups challenged the plan, arguing it could disrupt rental assistance efforts and homelessness services across the country.

The ruling pauses the new HUD funding rules while the legal case continues.

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