Judge Rejects Government Move to Dismiss Cities' Lawsuit Over HUD DEI Ban
A federal judge denied the government's request to toss a lawsuit filed by several cities challenging a Trump executive order that would cut HUD funding from agencies that adopt diversity, equity and inclusion policies.
Cities including Los Angeles, San Francisco, San Diego, Baltimore and Salem, Colorado, have sued to overturn a Trump administration executive order that would deny HUD money to agencies implementing diversity, equity and inclusion measures. The federal government sought to dismiss the case as duplicate of a Washington-state lawsuit and to move it there, but U.S. District Judge Jon Tigar rejected both arguments. He emphasized that the two actions target different grant programs and separate plaintiffs, making them legally independent.
The order in question would affect HUD's Operating Subsidy, Capital Fund, Family Self-Sufficiency and Multifamily Housing Service Coordinator programs. A related case in May 2025 already secured a preliminary injunction against the DEI limits on other HUD grants. With the dismissal denied, the lawsuit will now advance toward a trial on the merits.
Why it matters
The ruling lets cities continue challenging a federal policy that could restrict funding for housing programs tied to DEI initiatives.
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