Housing Advocates Sue Over $56 Million HUD Funding Cut

A coalition of the National Urban League and multiple state and local housing groups has sued the Trump administration over a $56 million cut to HUD’s Comprehensive Housing Counseling program, part of an $810 million rescission announced last week. Filed in the U.S. District Court for the District of Columbia, the complaint says the cancellation breaches the 1974 Impoundment Control Act and constitutional free-speech protections, comparing the administration’s interpretation to a prohibited line-item veto.

The administration argues that because the funds would expire during the 45-day review period, the president can effectively cancel them unilaterally. The plaintiffs counter that Congress never intended to grant such authority and accuse the administration of bias against the grant applicants. The Government Accountability Office has already warned that the rescissions are illegal, though it has not yet taken the case to court.