Judge Reverses DOGE’s Cancelation of HUD Fair Housing Grants

A federal judge halted a DOGE-led effort to cut $30 million worth of grants earmarked for fair housing programs.

The Massachusetts judge this week ordered the U.S. Department of Housing and Urban Development to restore 78 grants issued through the Fair Housing Initiatives Program, Inman reported. The department will not be able to cancel the same grants again, according to the order.

Judge Richard G. Stearns gave HUD until Friday to issue a notice to employees about the reinstatement of the grants and submit a compliance report.

The judge’s order only lasts two weeks from March 27, after which point HUD can cancel FHIP grants so long as it’s consistent with Congress’ prior apportionments.

“We are grateful for [Tuesday’s] decision granting a temporary restraining order, halting the wrongful and unlawful termination of FHIP grants to fight housing discrimination,” National Fair Housing Alliance president and CEO Lisa Rice said in a statement.

HUD abruptly terminated or delayed grants, leaving some without contracts or reimbursements since the beginning of the year. The termination was directed by President Donald Trump and billionaire Elon Musk’s Department of Government Efficiency, according to HUD’s termination letter to the group.

Earlier this month, four members of the NFHA sued HUD and DOGE over the allegedly unlawful cancellation of the grants, leading to this week’s order.

Separately, Rep. Maxine Waters and Sen. Elizabeth Warren are leading opposition to HUD’s cost-cutting plan, which includes the cancellation of fair housing grants and the layoff of 50 percent of the agency’s staff. They and hundreds of other legislators sent a letter to HUD secretary Scott Turner demanding information such as staffing statistics, planned layoffs and the status of pending fair housing complaints.

They also want to know more about the activities of DOGE at the agency. Turner had until Thursday to respond to the letter and schedule a briefing but has not publicly addressed the missive.

— Holden Walter-Warner