US judge blocks Trump overhaul of funding for fair housing groups

A federal judge on Wednesday blocked President Donald Trump's administration from ‌restructuring a federal grant program to redirect money away from over 100 non-profit organizations that had historically received funding to help prevent and investigate housing discrimination.

U.S. District Judge Myong Joun in Boston ruled, opens new tab the U.S. Department of Housing and Urban Development had failed to ​provide a reasoned explanation for its decision to implement "sweeping changes" to a decades-old grant program run ​by the agency designed to combat housing discrimination.

His ruling came in a lawsuit by the ⁠National Fair Housing Alliance and the Massachusetts Fair Housing Center, which sued in July to block the ​changes.

Lila Miller, a lawyer for the plaintiffs at the law firm Relman Colfax, in a statement said the ruling "rightfully ​recognizes the stakes at issue and protects the rule of law."

HUD did not respond to a request for comment.

Joun, an appointee of Democratic President Joe Biden, said Congress had long recognized the need to provide funding for fair housing organizations to help support ​the work of HUD, which had funded them through multi-year grants.

Yet he said HUD in July upended that ​system of enforcing the Fair Housing Act by announcing it would not allocate any of its congressionally appropriated funding for the ‌2025 fiscal ⁠year to private enforcement initiatives or to multi-year grants issued through the Fair Housing Initiatives Program, which Congress created in 1987.

In the past, HUD would typically award over 100 grants ranging from $75,000 to $425,000, according to lawyers for the fair housing groups.

HUD instead planned to use $46 million of the $56 million that Congress had appropriated for just five grants, $25 million ​of which would go to ​a law school.

The ⁠remaining $10 million could go to a state or local agency.

"The effect of HUD’s restructure effectively bars the very housing organizations that have been effectuating FHIP’s mission year after ​year since its enactment," Joun said.

The Trump administration also sought to force grant ​recipients to sign ⁠onto unrelated conditions to receive funding, by imposing requirements that they not use any funding to support "gender ideology" or "illegal immigration."

HUD had argued it had the discretion to impose those conditions and that the changes it was making to the ⁠grant program ​were part of a large-scale modernization effort designed to broaden participation.

But ​Joun said that the "pithy description falls woefully short of the mark in both form and substance," and it was "hard to see how or ​where Defendants relied on relevant data in crafting these changes."

-Reuters