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The Trump administration has begun terminating grants to organizations that investigate and litigate housing discrimination cases, a move that could cripple the enforcement of the Fair Housing Act, according to documents obtained by The Associated Press on Friday.
The U.S. Department of Housing and Urban Development (HUD) has long disbursed these grants to private nonprofits, which act as the frontline enforcers of the 1968 federal anti-discrimination law. These organizations educate communities about their housing rights, conduct undercover investigations into discriminatory practices, and assist victims in legal battles.
According to the National Fair Housing Alliance, private nonprofits processed 75% of the estimated 34,000 fair housing complaints lodged in the U.S. in 2023, while HUD and the Department of Justice handled less than 6% combined. The majority of these complaints—over half—were related to discrimination based on disability.
Now, of the 162 active fair housing enforcement grants, nearly half are slated for cancellation. Nikitra Bailey, executive vice president of the National Fair Housing Alliance, warned that the cuts could shutter some organizations entirely, forcing others to lay off staff and drastically reduce services.
“It’s happening at a time when Americans are struggling with rising housing costs and a severe lack of supply,” Bailey said. “Instead of increased support, the government is withdrawing from its basic civil rights responsibilities.”
Trump Admin Defends Cuts Amid Backlash
A HUD spokesperson defended the decision, stating:
“The Department is responsible for ensuring our grantees and contractors are in compliance with the President’s Executive Orders. If we determine they are not in compliance, then we are required to take action. The Department will continue to serve the American people, including those facing housing discrimination or eviction.”
However, fair housing advocates argue that the cuts undermine the very enforcement mechanisms necessary to protect vulnerable renters and homeowners.
“The fair housing laws don’t enforce themselves,” said Maureen St. Cyr, executive director of the Massachusetts Fair Housing Center, which is among the organizations losing funding. “People need lawyers to make those rights a reality.”
St. Cyr’s organization has helped families denied housing because they have children, veterans with disabilities needing accessibility modifications, and domestic abuse survivors facing eviction due to an abuser’s actions.
“We are doing a lot of work with pretty minimal money,” she added.
Fair Housing Enforcement in Peril
HUD’s fair housing enforcement grants, part of the Fair Housing Initiatives Program, are typically worth $425,000 and are awarded annually. The loss of these funds is expected to have an immediate and devastating impact on affected organizations.
A termination letter obtained by the AP revealed that the decision was made under the direction of President Trump and the Department of Government Efficiency (DOGE), a new federal body partially overseen by billionaire Elon Musk. The letters, sent late Thursday night, left fair housing organizations scrambling for answers.
What’s Next?
With fair housing enforcement at risk, legal battles may be on the horizon. Civil rights groups are expected to challenge the decision, arguing that the cuts violate federal law and leave thousands of Americans vulnerable to housing discrimination.
As the crisis unfolds, housing advocates, lawmakers, and affected communities will be closely watching how the administration responds to mounting criticism.
