Legal Action

Nonprofit organizations dedicated to developing and supporting housing for vulnerable populations brought this action, challenging U.S. Department of Housing and Urban Development’s (HUD) abrupt reversal of previously approved funding awards and its issuance of new criteria that condition eligibility on adherence to the Trump-Vance administration’s preferred social and policy positions, including those related to immigration and transgender rights. They allege that HUD’s actions are unlawful because they exceed statutory authority, violate the Constitution’s separation of powers and Spending Clause, contravene the Administrative Procedure Act’s procedural and substantive requirements, and are arbitrary and capricious. Plaintiffs seek declaratory and injunctive relief halting HUD’s unlawful award process, preserving the $75 million in appropriated funds from expiration, and requiring HUD to distribute them under lawful and neutral criteria.