HUD Pauses Anti-DEI Rules After Multiple Lawsuits

The Housing Department retracted a funding application that changes how Continuum of Care funds are allocated.

2 minute read

December 11, 2025, 8:00 AM PST

By Diana Ionescu @aworkoffiction


View of brutalist concrete HUD headquarters building in Washington, D.C.

HUD retracted an application that made drastic changes in how Continuum of Care funds are allocated, saying they will rerelease an application after making changes. | Harrison Keely, CC BY 4.0, via Wikimedia Commons / Wikimedia Commons

The Department of Housing and Urban Development (HUD) has suspended the application process for the Continuum of Care grant program as the agency contends with two lawsuits challenging new grant criteria that make drastic cuts to funding for permanent housing and include language that could restrict funding for agencies that acknowledge the existence of transgender and nonbinary people, reports Katherine Hapgood for Politico.

“The two suits challenge a policy change by HUD Secretary Scott Turner which mandates that only 30 percent of the agency’s Continuum of Care funding can be used for permanent housing, down from roughly 90 percent,” Hapgood explains. Housing providers say the cuts, and the last-minute changes to grant requirements, will strain their resources and limit their ability to provide services to long-term clients.

HUD withdrew its notice for grant proposals less than two hours before a Monday court hearing on the cases. U.S. District Judge Mary S. McElroy said “This sort of haphazard approach to administrative law is the problem” and “ordered the government to submit new arguments by next week addressing the last-minute change.”

The agency says it will reissue the funding notice with “technical corrections.” Hapgood adds, “HUD employees were expected to work this week to open the application process under the new funding requirements but the policy change being withdrawn caught HUD employees by surprise, according to two agency employees granted anonymity to discuss internal communication.”

Tuesday, December 9, 2025 in Politico

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

September 16, 2026 - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A cluster of wind turbines beneath a stormy sky, above a forest where the leaves are beginning to change colors.

5 New England states march closer to 800 megawatt wind energy project

Securing federal approval for the project may be complicated under the Trump administration, which has historically been hostile towards domestic wind power.

6 hours ago - Inside Climate News

People boarding a bus on Maryland's Orange Route.

Baltimore to break ground on $50 million Transit Priority Project

The project will bring faster bus trips, safer streets and better bike connections to Baltimore.

7 hours ago - Mass Transit

A brick building with a circular sign with the Airbnb logo hanging off of it.

Airbnb launches $250 million 'last-dollar financing' housing accelerator, makes first investment in Austin

The company will put $6.4 million towards affordable housing development in Texas’ capital.

September 16 - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.