US Judge blocks housing grant cuts while anti-DEI challenge proceeds
The groups say the cuts to housing counseling and grant programs violate federal budget law, the Constitution and free speech rights, according to the complaint.
- On Tuesday, the National Urban League and 10 nonprofit groups sued the Department of Housing and Urban Development in Washington, challenging a $56 million cancellation of congressionally appropriated housing counseling grants.
- The White House claims the grants fund "DEI-centric discriminatory agendas," prompting a proposal to rescind $810 million; the administration cited the 1974 Impoundment Control Act to justify holding these funds for congressional review.
- Plaintiffs argue the cancellations violate the Constitution and First Amendment, alleging unlawful retaliation against their viewpoints. CEO Seema Agnani said the organization has "depended on these dollars since the foreclosure crisis of 2008."
- Late Wednesday, District Judge Jia Cobb suspended the September 30 deadline that would have caused the funds to revert to the Treasury, preserving them while the legal challenge proceeds.
- The Government Accountability Office maintains the administration's maneuver is illegal, though prior court rulings on similar "pocket rescissions" remain unresolved; responses from both sides are due by October 19.
7 Articles
7 Articles
US Judge blocks housing grant cuts while anti-DEI challenge proceeds
A federal judge temporarily blocked the Trump administration from canceling nearly $56 million in housing counseling grants, preserving the funding while a legal challenge to the cuts moves forward.
Democracy Defenders’ Lawsuit Demands Court Block Trump Pocket Rescission of HUD Funds
A coalition of 10 nonprofit housing organizations, represented by Democracy Defenders Action, filed suit Tuesday in the U.S. District Court for the District of Columbia seeking to block the Trump administration from implementing a pocket rescission of $56.1 million of the $57.5 million Congress appropriated for HUD’s Comprehensive Housing Counseling program. The lawsuit, National Urban League et al. v. Trump et al., names as plaintiffs the Nati…
Housing groups challenge Trump funding clawback
The National Urban League and several local housing nonprofits nationwide challenged part of the Trump administration’s last-minute cancellation of congressionally appropriated funds. The lawsuit, filed Tuesday night in the U.S. District Court for the District of Columbia, focuses on one portion of the $810 million cancellation the Trump administration announced last week, a $56 million […]
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