Federal Judge Blocks HUD Plan to Overhaul Fair Housing Grant Funding

A federal judge in Boston has blocked the Trump administration's attempt to restructure a federal grant program that supports fair housing enforcement, preventing a major shift in funding away from over 100 non-profit organizations.

U.S. District Judge Myong Joun ruled that the Department of Housing and Urban Development (HUD) failed to provide a reasoned explanation for its sweeping changes to the decades-old Fair Housing Initiatives Program (FHIP), which Congress created in 1987.

The ruling came in a lawsuit filed in July by the National Fair Housing Alliance and the Massachusetts Fair Housing Center. The groups argued that HUD's plan would upend the system for enforcing the Fair Housing Act.

Under the new plan, HUD intended to direct $46 million of the $56 million appropriated by Congress for fiscal year 2025 to just five grants, with $25 million going to a law school. The remaining $10 million could be awarded to a state or local agency. Historically, HUD awarded over 100 grants ranging from $75,000 to $425,000.

Judge Joun noted that the restructuring would effectively bar the very organizations that have been carrying out FHIP's mission since its inception. He also pointed to the administration's attempt to impose unrelated conditions on recipients, such as prohibiting the use of funds to support "gender ideology" or "illegal immigration."

HUD argued it had the discretion to impose these conditions and described the changes as part of a modernization effort to broaden participation. However, Judge Joun said this description fell "woefully short of the mark" and that it was hard to see how the agency relied on relevant data in crafting the changes.

Lila Miller, a lawyer for the plaintiffs, said the ruling "rightfully recognizes the stakes at issue and protects the rule of law." HUD did not respond to a request for comment.