Chicago Housing Authority Sues HUD Over DEI Funding Cuts

The agency could lose over 13 percent of its funding due to federal cuts.

1 minute read

October 23, 2025, 8:00 AM PDT

By Diana Ionescu @aworkoffiction


High-rise public housing buildings in Chicago surrounded by green lawn.

Ute Sonja Medley / Shutterstock

The Chicago Housing Authority is suing the U.S. Department of Housing and Urban Development over the loss of federal grant funding that amounts to over 13 percent of the agency’s budget.

According to an article by Ryan Kushner in Smart Cities Dive, the lawsuit focuses primarily on Operating Subsidy Grants that account for $185 million of CHA’s budget. “CHA, the third largest public housing authority in the country, serving 135,000 city residents, said it anticipates that HUD ‘may impose these certifications across additional federal funds and programs, which could implicate more than $1 billion’ of its federal funding.”

Tuesday, October 21, 2025 in Smart Cities Dive

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