US Judge blocks housing grant cuts while anti-DEI challenge proceeds
The groups say the cuts to housing counseling and grant programs violate federal budget law, the Constitution and free speech rights, according to the complaint.
- On Tuesday, the National Urban League and 10 nonprofit groups sued the Department of Housing and Urban Development in Washington, challenging the administration's cancellation of $56 million in congressionally appropriated housing counseling grants.
- The White House claims the grants fund "DEI-centric discriminatory agendas," prompting a proposal to rescind $810 million across government programs; the administration cited the 1974 Impoundment Control Act to justify holding these funds for congressional review.
- Plaintiffs argue the cancellations violate the Constitution and First Amendment, alleging unlawful retaliation based on viewpoint discrimination. CEO Seema Agnani noted the organization has "depended on these dollars since the foreclosure crisis of 2008."
- Late Wednesday, District Judge Jia Cobb suspended the September 30 deadline that would have caused the funds to revert to the Treasury, preserving the money while the legal challenge proceeds.
- With responses due October 19, the lawsuit is scheduled to continue as the Government Accountability Office maintains the administration's maneuver is illegal, though prior court rulings on similar "pocket rescissions" remain unresolved.
14 Articles
14 Articles
Housing Action Illinois sues HUD as Trump administration brands nonprofit 'radical left NGO'
<p>A federal judge temporarily blocked the Trump administration's efforts to cut roughly $56 million in housing counseling funding — giving Chicago-based Housing Action Illinois and nine other nonprofits across the U.S. some relief.</p><p>The victory comes after the 10 nonprofits sued the U.S. Department of Housing and Urban Development on Tuesday for attempting to claw back funding allocated for HUD's Comprehensive Housing Counseling program. T…
US Judge blocks housing grant cuts while anti-DEI challenge proceeds
A federal judge temporarily blocked the Trump administration from canceling nearly $56 million in housing counseling grants, preserving the funding while a legal challenge to the cuts moves forward.
Democracy Defenders’ Lawsuit Demands Court Block Trump Pocket Rescission of HUD Funds
A coalition of 10 nonprofit housing organizations, represented by Democracy Defenders Action, filed suit Tuesday in the U.S. District Court for the District of Columbia seeking to block the Trump administration from implementing a pocket rescission of $56.1 million of the $57.5 million Congress appropriated for HUD’s Comprehensive Housing Counseling program. The lawsuit, National Urban League et al. v. Trump et al., names as plaintiffs the Nati…
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