New York Attorney General Letitia James is leading a coalition of 21 attorneys general in a legal push to restore federal funding for fair housing organizations. The effort responds to a sudden decision by the U.S. Department of Housing and Urban Development (HUD) to cancel 78 grants in February 2025.
These grants supported nonprofit groups in 33 states, including New York, that help fight housing discrimination and assist vulnerable renters.
HUD cuts threaten housing protections
HUD canceled the grants without prior notice, despite Congress allocating the funds. As a result, dozens of housing organizations lost key resources overnight. In response, 66 nonprofits sued HUD in federal court. The attorneys general are now backing an appeal to reinstate a restraining order and block the funding cuts.
Attorney General James called the move harmful to housing equity. “Fair housing groups are critical in helping states stop discrimination,” she said. “We need them now more than ever.”
Fair housing groups play a key role
These organizations enforce housing laws and support residents facing bias or eviction. For example, in New York, they help disabled tenants file complaints about building access. They also investigate bias in mortgage lending and rental advertising, including algorithm-based discrimination.
Moreover, they help tenants resolve disputes with landlords and connect them with state agencies like the New York Division of Human Rights.
Without these services, more low-income and disabled individuals may fall through the cracks.
Attorneys general highlight legal obligations
In their brief to the First Circuit Court of Appeals, the attorneys general argue that HUD’s action violates federal law. Congress created the Fair Housing Initiatives Program (FHIP) in 1988. Under this program, the agency must fund nonprofit groups that work to eliminate housing discrimination.
The attorneys general warn that canceling these grants will disrupt state-level enforcement efforts. In addition, the cuts could cause long-term harm to people in marginalized communities.
National coalition pushes for funding
James is not alone in this fight. Attorneys general from 20 other states and the District of Columbia joined the brief. The coalition spans states such as California, Colorado, Illinois, Massachusetts, and North Carolina. Together, they urge the court to restore the funding and protect fair housing programs.
Bottom line: Attorney General Letitia James and a coalition of states are fighting to restore critical housing funds cut by HUD. These grants support nonprofit groups that enforce fair housing laws and help protect renters from discrimination—especially in low-income and vulnerable communities.
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