Federal Judge Issues Temporary Restraining Order to Temporarily Stop HUD/DOGE’s Termination of FHIP Grants to Fight Housing Discrimination

 

After Relman Colfax PLLC and four members of the National Fair Housing Alliance (NFHA) filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) and Department of Government Efficiency (DOGE), On March 26th, Judge Richard G. Stearns of the U.S. District Court for the District of Massachusetts issued a temporary restraining order (TRO) halting the termination of 78 FHIP grants. 

The original legal action followed HUD’s sudden and alleged unlawful termination of grants disbursed under the Fair Housing Initiatives Program (FHIP). The termination of those grants jeopardizes over $30 million in critical, congressionally authorized funding for fair housing groups to fight housing discrimination and enforce fair housing laws throughout the U.S. The lawsuit, filed in the U.S. District Court in the District of Massachusetts, was brought on behalf of a proposed class of over 60 fair housing groups whose grants were abruptly terminated by HUD and DOGE on February 27, 2025. 

Fair housing groups, funded by FHIP, have long served as the backbone of efforts to combat housing discrimination, enforcing the Fair Housing Act (FHA). These groups investigate housing discrimination complaints, enforce fair housing laws, assist individuals facing discrimination, educate communities about their rights, and collaborate with local governments to expand fair and affordable housing opportunities. FHIP grants–which originated from Congress’s recognition of the central role of fair housing organizations in combatting housing discrimination–are a primary source of funding for fair housing groups.

On February 27th, a letter informed grantees that the terminations were effective that same day. 78 FHIP grants were terminated altogether, representing a primary source of funding for fair housing organizations in 33 states. The FHIP grants were halted at the direction of the DOGE, claiming the grants “no longer effectuate the program goals or agency priorities,” despite grantees performing activities aligned with Congressionally authorized aims. The filing argued that DOGE lacked the authority to direct HUD to cancel grants, and HUD cannot follow such directives.

Fair housing organizations, particularly the four named plaintiffs in the TRO filing, are already feeling the harm and devastating effects of this funding termination. The Massachusetts Fair Housing Center, Intermountain Fair Housing Council, Fair Housing Council of South Texas – San Antonio Fair Housing Council, and Housing Research and Advocacy Center – Fair Housing Center for Rights and Research are among the plaintiffs who have long fought to dismantle discriminatory housing practices in their respective regions and beyond.

Fair housing is a legal right, and FHIP grants were a promise to the American people that cannot be revoked at DOGE’s direction without any explanation. Relman Colfax and these organizations are resolute in fighting for the organizations, families, individuals, and communities that FHIP grants safeguard.

A copy of the filing can be found here.

Read the March 13, 2025 NFHA article.