In a significant decision for fair housing advocacy across the country, a federal judge has temporarily blocked the U.S. Department of Housing and Urban Development (HUD) from cutting funding to dozens of organizations that help enforce housing discrimination laws.

HUD Fair Housing Grants Restored by Court Order

On March 26, 2025, Judge Richard G. Stearns of the U.S. District Court for Massachusetts issued a temporary injunction preventing HUD from terminating funding for the Fair Housing Initiatives Program (FHIP). The move comes after multiple fair housing groups filed a lawsuit challenging HUD’s sudden decision to revoke 78 FHIP grants across 33 states.

The court’s order requires HUD to immediately reinstate the funding and prohibits the agency from terminating any additional grants unless such actions are explicitly authorized by law or court approval.

What Are FHIP Grants and Why Do They Matter?

FHIP grants have long been a vital tool in promoting fair housing across the United States. Authorized by Congress and funded through annual appropriations, these grants are awarded to local and national fair housing organizations to:

• Educate the public about housing discrimination laws

• Investigate complaints of fair housing violations

• Provide community-based support to enforce Fair Housing Act protections

These efforts play a crucial role in ensuring equal housing opportunities regardless of race, religion, gender, disability, or other protected statuses.

Controversy Over HUD’s February Decision

The legal challenge followed a letter sent by HUD on February 27, 2025, to grant recipients, stating that the funding “no longer effectuates the program goals or agency priorities.” This abrupt termination threatened to disrupt dozens of ongoing fair housing investigations and public education initiatives across the country.

With the court’s decision, these organizations can now resume their critical work—at least temporarily—while the legal battle continues.

Source: National Association of Realtors (NAR), March 26, 2025