A class action lawsuit was filed this week from different fair housing organizations who came together to bring HUD to civil court over changes made by the so-called “Department of Government Efficiency” or DOGE. This lawsuit, Civil Action No. 3:25-cv-30041, seeks to reverse the order to terminate funding for Fair Housing Initiatives Program (FHIP).
This lawsuit begins with the following,
On February 27, 2025, the U.S. Department of Housing and Urban Development (HUD) arbitrarily and without notice, reason, or sensible explanation terminated 78 Fair Housing Initiatives Program (FHIP) grants, a primary source of funding for fair housing organizations in 33 states. The advocacy, enforcement, education and outreach, counseling, and training that has been a bulwark against housing discrimination and segregation for decades was immediately and suddenly compromised.
The lawsuit focuses largely on the abrupt change associated with the addition of DOGE representatives to HUD. According to the complaint, HUD’s current leadership, stated the following regarding the elimination of the FHIP grants,
“…the grants were being terminated because they “no longer effectuate the program goals or agency priorities.”
The class action lawsuit argues that DOGE and by extension, HUD, does not have the power to make the sudden and dramatic cuts without congressional approval.
What Does the FHIP Program Do?
FHIP was started under the Reagan administration in the 1980s, and has grown and flourished into a successful program that services a wide variety of housing aims, from counseling to ensuring non-discrimination in all aspects of rental housing. FHIP was made permanent in 1991, and has been seen as a low-cost and successful program ever since.
While FHIP’s mission does include a mission to increase housing equity and fight discrimination, it does so much more. Elements of FHIP address social concerns ranging from domestic violence to homelessness and home ownership.
Maureen St. Cyr of Massachusetts Fair Housing Center, one of the members of the class action suit, says,
“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. “
Fair Housing is a legal right to all Americans and has been for more than fifty years. Organizations like the ones filing this class action lawsuit, essentially create the means to enforce the fair housing protections afforded to all citizens. Removing the funding that makes this enforcement possible puts Fair Housing laws at risk for everyone. The lawsuit may provide clarity on this important goal.
