Federal Judge Grants Temporary Restraining Order in Class Action Lawsuit Against HUD for Withholding Fair Housing Funds
Aug 04, 2025
By San Kwon, NLIHC Policy Intern
On July 29, U.S. District Court Judge Sparkle L. Sooknanan granted a temporary restraining order requiring HUD to release and distribute federal fair housing funds, mandated under the Fair Housing Initiatives Program (FHIP), to local fair housing organizations across the country.
FHIP was created in 1987 by Congress to support frontline organizations that defend, enforce, and advance fair housing laws and practices. Fair housing organizations have used FHIP funds to stop insurance and lending redlining practices, support the development of housing units accessible for people with disabilities, target sexually abusive landlords, prevent homelessness for families with children, and more. The unconstitutional withholding of FHIP funds comes after more than thirty years of unbroken interdependence between HUD and fair housing organizations.
The recent ruling granting the restraining order is the latest development of a federal class action lawsuit filed in June 2025 by the prominent civil rights firm Relman Colfax, PLLC, on behalf of the National Fair Housing Alliance (NFHA) and the Tennessee Fair Housing Council (TFHC), challenging HUD’s unlawful refusal to administer critical, congressionally appropriated grant funding under FHIP (see Memo, 7/14).
In the decision, Judge Sooknanan ordered HUD to provide a detailed timeline for how it will make new grants before September 30––the date by which the appropriations that back them expire––and to update the court later this week on its progress in administering existing grants.
“Today’s decision is a crucial step in restoring the fair housing infrastructure that millions of people across the country rely on to challenge illegal housing and lending policies and practices and access justice,” said Lisa Rice, president and CEO of NFHA. “The court recognized the real and immediate harm that HUD’s actions are causing to fair housing organizations and the communities that depend on them as the nation continues to grapple with a fair and affordable housing crisis.”
Read the judge’s ruling here.
Read NFHA’s press release here.
Read NLIHC’s previous memo article on the lawsuit here.