Washington, D.C.—Relman Colfax and four members of the National Fair Housing Alliance (NFHA) announce the filing of a lawsuit against the U.S. Department of Housing and Urban Development (HUD) and Department of Government Efficiency (DOGE). This legal action follows HUD’s sudden and 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 country.
The lawsuit, filed in the United States District Court in the District of Massachusetts, is brought on behalf of a proposed class of more than 60 fair housing groups whose grants were abruptly terminated by HUD and DOGE on February 27, 2025. Plaintiffs have moved for a temporary restraining order (TRO).
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.
Late in the evening 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 newly established DOGE, claiming the grants “no longer effectuate[] the program goals or agency priorities,” despite grantees performing activities aligned with Congressionally authorized aims. The filing argues that DOGE lacks 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.
“The sudden termination of these grants comes at a time of escalating discrimination complaints,” said Yiyang Wu, Partner at Relman Colfax. “These programs are not just administrative line items; they are lifelines for all Americans. HUD’s and DOGE’s irresponsible actions could dismantle critical programs and shutter organizations that ensure access to fair, equitable housing nationwide.”
Lisa Rice, President and CEO of the National Fair Housing Alliance, explained: “A housing market in which all people cannot participate fairly, without regard to race, color, national origin, religion, gender, familial status, or disability, is a broken market economically and morally. Fair housing has always received broad and regular bipartisan support, and fair housing is an official policy of the United States. In fact, Congress established FHIP, in part, to support activities to rectify the centuries of discriminatory housing and lending policies and practices perpetuated by the federal government that created systemic barriers to housing opportunity, including the residential segregation impacting so many people today. The Trump administration’s actions leaves survivors of sexual harassment in housing; people with disabilities requiring accessible housing; and people of color seeking to buy a home free of racial harassment with no protection and nowhere to turn to uphold the law. Eliminating the FHIP grants has created fear, chaos, insecurity, and dysfunction among people in dire need of assistance. In many communities where there is no alternative to enforce fair housing laws, these decisions will have profound and immediate impacts on communities and risk undermining our already fragile housing market.”
“As the oldest fair housing organization in Massachusetts, founded in direct response to the creation of the FHIP program, we’ve worked tirelessly across administrations to uphold housing equity,” said Maureen St. Cyr, Executive Director of the Massachusetts Fair Housing Center. “Our work has changed lives by helping veterans get ramps to make their housing accessible and domestic violence survivors stave off eviction to keep their families stably housed. Through this work, we have also saved taxpayers money by reducing the significant costs of homelessness. It’s difficult to see how this essential mission could conflict with the priorities of any administration. Terminating this funding jeopardizes progress we’ve achieved over decades and prevents us from serving the families today that need immediate assistance. “
“We have been serving communities across all 44 counties in Idaho for over 30 years, assisting those who are experiencing housing discrimination, instability, or homelessness. Many are from communities that are oftentimes overlooked and underserved: rural communities, immigrant communities, veterans, the disabled, and the elderly, to name a few,” said Zoe Ann Olson, Executive Director at the Intermountain Fair Housing Council. “FHIP funding has been critical for ensuring that individuals and families have access to the resources and advocacy they need. Without this support, thousands risk being left without protection or recourse. Losing these resources sends a dangerous message that fair housing protections for Idahoans and beyond are no longer a national priority.”
“The termination of FHIP funding devastates communities across Texas, where discrimination in housing remains prevalent,” said Sandra Tamez, Executive Director at the Fair Housing Council of South Texas – San Antonio Fair Housing Council. “For decades, our work has ensured that
families, regardless of their background or income, can access fair housing opportunities. Without this critical support, justice for individuals who experience housing discrimination will be out of reach, and lives will be left in the balance. It is not just about funding; it is about the values we uphold as a society—ensuring everyone has a fair shot at accessible, inclusive housing.”
“This abrupt termination has caused substantial chaos and confusion, not only to our organization, but to thousands of Ohioans. This unprecedented action undermines decades of progress in fair housing advocacy and threatens the stability of organizations that have tirelessly fought for equality, ” said Carrie Pleasants, Executive Director at the Housing Research and Advocacy Center – Fair Housing Center for Rights and Research. “It sets a dangerous precedent, leaving countless individuals without the support they need to overcome housing inequality. All of Ohio will bear the brunt of this detrimental decision.”
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 brave organizations remain resolute in fighting for the organizations, families, individuals, and communities that FHIP grants safeguard.