Housing Groups Sue HUD Over “Unconstitutional and Unlawful” Grant Requirements

The National Alliance to End Homelessness and Women’s Development Corp. have sued the Department of Housing and Urban Development (HUD), prompting a judge to issue a temporary restraining order that bars HUD from using newly created funding criteria that calls on cities to align with Trump administration priorities.

According to an article by Ryan Kushner in Smart Cities Dive, “HUD’s grant criteria blocks applications from entities that “operate in jurisdictions with policies the Trump-Vance administration disfavors,” the organizations argue, including states and cities that offer sanctuary protections or inclusive policies for transgender people.” Disqualifying criteria also include jurisdictions that offer “harm reduction” programs for drug users.

On September 5, HUD opened a new notice of funding for previously awarded grants based on the new criteria. The lawsuit claims HUD does not have the authority to limit funding based on political alignment. According to a press release from Women’s Development Corporation Executive Director Frank Shea, “By implementing jurisdictional criteria that a non-profit applicant doesn’t control, the administration is drawing lines around towns and entire states that will no longer be able to compete for federal funding.”