WASHINGTON — The Supreme Court wrestled with major questions about the growing issue of homelessness on Monday as it considered whether cities can punish people for sleeping outside when shelter space is lacking.

It’s the most significant case before the high court in decades on the issue, and comes as record numbers of people are without a permanent place to live in the United States.

The case started in the rural Oregon town of Grants Pass, which began fining people $295 for sleeping outside as the cost of housing escalated and tents sprung up in the city’s public parks. The San Francisco-based U.S. 9th Circuit Court of Appeals struck down the law under its holding that banning camping in places without enough shelter beds amounts to cruel and unusual punishment.

The justices appeared to be leaning toward a narrow ruling in the case after hearing arguments that showed the stark terms of the debate over homelessness in Western states like California, which is home to one-third of the country’s homeless population.

Sleeping is a biological necessity, and people may be forced to do it outside if they can’t get housing or there’s no space in shelters, Justice Sonia Sotomayor said.

“Where do we put them if every city, every village, every town lacks compassion and passes a law identical to this? Where are they supposed to sleep? Are they supposed to kill themselves, not sleeping?” she said.

Solving homelessness is a complicated question, said Justice Brett Kavanaugh, who raised questions about both the role of federal courts and of camping bans. “How does it help if there are not enough beds for the number of homeless people in the jurisdiction?” he said.

Other conservative justices asked how far Eighth Amendment legal protections should extend as cities struggle with managing homeless encampments that can be dangerous and unsanitary.

“How about if there are no public bathroom facilities, do people have an Eighth Amendment right to defecate and urinate outdoors?” said Justice Neil Gorsuch.