ATTORNEY GENERAL RAOUL LEADS COALITION CHALLENGING TRUMP ADMINISTRATION’S ATTACK ON STATES’ FAIR HOUSING LAWS

ATTORNEY GENERAL RAOUL LEADS COALITION CHALLENGING TRUMP ADMINISTRATION'S ATTACK ON STATES' FAIR HOUSING LAWS

March 16, 2026

Chicago - Attorney General Kwame Raoul today co-led a coalition of 16 attorneys general in filing a lawsuit challenging unlawful actions by the Department of Housing and Urban Development (HUD), including threats to withhold funding from state and local fair housing enforcement agencies for abiding by state laws and to impose illegal conditions on HUD funding. These actions threaten to weaken America's fair housing enforcement system and undermine states' ability to ensure equal access to housing. If unchallenged, discrimination in housing is almost certain to increase.

"These actions are part of a broader, ongoing effort by the Trump administration to subvert the legal protections our country has put in place to combat discrimination and to tear down the hard-fought progress we have made for civil rights," Raoul said. "Courts have consistently rejected the administration's attempts to use congressionally mandated programs to coerce states into adopting President Trump's preferred policies. I will continue to fight for fair access to housing for all Americans and for the rule of law."

Sixty years ago, Congress enacted the Fair Housing Act to address pervasive housing discrimination. Congress also created a robust partnership between HUD and state and local agencies, known as the Fair Housing Assistance Program (FHAP), to enforce this landmark civil rights law in tandem with state fair housing laws. The FHAP has had strong bipartisan support in Congress and stable funding since it was established in 1980.

In their lawsuit being filed today, Raoul and the attorneys general allege that the Trump administration is seeking to illegally undermine this partnership by attacking states' ability to combat housing discrimination under their own democratically enacted state laws.

Through the FHAP, HUD refers allegations of housing discrimination to state and local partner agencies for investigation and enforcement. These agencies receive HUD funding, which they use to process housing discrimination complaints, train staff, and support community outreach and education.

In September 2025, HUD issued guidance to the Illinois Department of Human Rights and partner agencies in other states, threatening to decertify them from the program and cut off funding unless they stop enforcing crucial protections against housing discrimination based on sexual orientation, gender identity, language, criminal records and source of income. The guidance also bars agencies from pursuing claims targeting housing practices that may appear neutral but, in reality, are discriminatory and have a disparate impact on certain populations. In Illinois and many other states, these fair housing protections are enshrined in state law.

In addition to the threat to decertify partner agencies, HUD is attempting to impose vague, ideologically motivated, and unlawful conditions on program funding.

In their complaint, Raoul and the attorneys general assert that the administration's actions will raise the costs of enforcing state and federal fair housing laws in their states. They also argue that HUD's vague conditions will sow confusion over enforcement.

The attorneys general note that this unlawful ultimatum comes after HUD gutted its own fair housing enforcement capabilities by slashing its headcount and significantly reducing the number of housing discrimination cases it charges. The agency also fired employee whistleblowers after they publicly sounded the alarm about its decimation of fair housing enforcement.

The coalition's lawsuit alleges that HUD's guidance violates the Spending Clause of the U.S. Constitution and the federal Administrative Procedure Act, which governs how federal agencies implement rule changes.

Attorney General Raoul co-led the coalition of states with California Attorney General Rob Bonta. Joining them in filing the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, Vermont and Washington.