New York Attorney General Letitia James, together with 20 other attorneys general, is appealing to the U.S. Court of Appeals for the First Circuit to restore funding for fair housing organizations. In February, the U.S. Department of Housing and Urban Development (HUD) canceled 78 grants intended for fair housing efforts in 33 states, including New York. These grants are vital for investigating discriminatory housing practices and educating the public on fair housing laws.
Attorney General James highlighted the importance of these organizations, stating, "The Trump administration’s funding cuts to fair housing groups will only worsen the nationwide housing crisis. Fair housing groups are critical in helping states stop housing providers and lenders from discriminating against vulnerable people, and we need them now more than ever to ensure that everyone has fair access to dignified housing. I am urging the First Circuit to restore congressionally approved funding for fair housing groups so we can continue to protect access to housing for those who need it most."
The Fair Housing Initiative Program (FHIP) was established by Congress in 1988 to support non-profit organizations in combating discriminatory housing practices. In February 2025, HUD's sudden cancellation of 78 FHIP grants disrupted these efforts, affecting many states that rely on these organizations.
Following these cancellations, 66 nonprofit fair housing groups filed a lawsuit against HUD in the U.S. District Court for the District of Massachusetts. The group is now seeking an appellate court’s intervention to reinstate a temporary restraining order to halt HUD’s actions. The coalition of attorneys general argues that the funding cuts could lead to increased discrimination and disruptions in state programs collaborating with fair housing groups.
FHIP organizations, as noted in the brief, play a crucial role in enforcing fair housing laws. They undertake enforcement actions in New York, such as addressing discrimination faced by disabled individuals and uncovering biases in housing advertisement algorithms. In other states, they have taken action against banks and mortgage companies for discriminatory practices related to foreclosed properties in minority communities. These organizations also offer essential services, such as mediation with landlords and claim filing with state agencies like the New York Division of Human Rights.
Joining Attorney General James are colleagues from Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Massachusetts, Oregon, Rhode Island, Vermont, and Washington.