States Sue Hud Over Guidance They Say Weakens Fair Housing Protections

A coalition of 16 attorneys general has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD), alleging the agency is attempting to force states to weaken their housing discrimination protections.

The dispute centers on written guidance issued by HUD in September to state and local agencies that participate in the Fair Housing Assistance Program (FHAP). According to the lawsuit, the guidance threatens to decertify these agencies — cutting off complaint referrals and federal funding — unless they adopt a narrower interpretation of the Fair Housing Act.

State officials argue the directive would make it harder to hold landlords accountable for discriminatory practices.

“HUD’s attempt to coerce Plaintiffs to abandon their fair housing protections conflicts with the [Fair Housing Act], violates HUD’s own regulations, and reverses decades of practice,” the lawsuit states.

The case was filed Monday in the U.S. District Court for the Northern District of California. The attorneys general allege the guidance violates the Administrative Procedure Act and the U.S. Constitution, and they are asking the court to block its implementation.

In response, HUD Secretary Scott Turner criticized the lawsuit in a social media post.

“Leftist state attorneys general have run to a San Francisco courthouse in a desperate attempt to obstruct President Trump’s America First agenda through political lawfare. Their latest stunt will not succeed,” Turner wrote on X.

“As Secretary, I will continue enforcing the Fair Housing Act as written and intended. That is to ensure equal rights under the law, not extra rights for politically favored groups.”

The Fair Housing Act prohibits discrimination based on seven protected characteristics: race, color, national origin, religion, sex, familial status and disability. But the AGs argue the federal law establishes “a floor — not a ceiling,” noting that many states have expanded protections to include characteristics such as gender identity, sexual orientation, marital status, ancestry, source of income and military or veteran status. 

“All levels of government — local, state, and federal — should be laser focused not only on building more housing, but also ensuring that everyone can access a home free from discrimination,” California Attorney General Rob Bonta said in a statement. “Unfortunately, the Trump Administration thinks otherwise. HUD, without legal authority, is effectively undermining state laws that offer stronger protections than federal law.” 

The lawsuit is co-led by Bonta and Illinois Attorney General Kwame Raoul. AGs from Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, Vermont and Washington also joined the case.

The complaint also challenges new conditions placed on FHAP funding. According to the attorneys general, the guidance prohibits participating agencies from pursuing discrimination claims based on disparate-impact liability, using funds to “subsidize” or “promote” illegal immigration, and promoting what it calls “gender ideology.”

In addition, the lawsuit accuses HUD of weakening its own enforcement capacity by reducing staffing and dropping cases. The complaint also alleges the agency fired whistleblowers who raised concerns about what they described as the dismantling of fair housing enforcement.