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Democratic AGs Sue to Stop Trump’s Rollback of Anti-Discrimination Measures at HUD

Plaintiffs argue HUD's 2025 guidance restricts funding for investigations on sexual orientation and gender identity, threatening anti-discrimination enforcement across 16 states and DC.

  • A multistate group including California and Illinois sued HUD in the U.S. District Court for the Northern District of California, claiming the 2025 memo violates the Spending Clause and the Administrative Procedure Act.
  • After HUD's 2025 memo to state agencies rescinded earlier guidance in September, the department barred findings based on disparate impact and said agencies won't be reimbursed for cases involving sexual orientation, gender identity, criminal record or English-language proficiency.
  • Through the Fair Housing Assistance Program, HUD refers complaints to state fair-housing agencies that rely on HUD funding for investigations, while California state law and others extend protections beyond federal law.
  • Critics described the lawsuit as political lawfare, while attorneys general allege HUD has cut staffing and dismissed whistleblowers, and HUD Secretary Scott Turner defended the department on social media.
  • As part of a broader rollback of rules, HUD withdrew key fair housing documents and April 11, 2026 marks the 58th anniversary of the Fair Housing Act, raising conflicts with state laws.
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Nebraska ExaminerNebraska Examiner
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Lawsuit says HUD directive undercuts states’ ability to investigate housing discrimination

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Politico broke the news in on Monday, March 16, 2026.
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