Attorney General Neronha and coalition file lawsuit against HUD over fair housing funding threats

Peter Neronha, Attorney General of Rhode Island
Peter Neronha, Attorney General of Rhode Island
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Attorney General Peter F. Neronha announced on Mar. 16 that he has joined a coalition of 16 attorneys general in filing a lawsuit against the Department of Housing and Urban Development (HUD). The lawsuit challenges HUD’s actions, which include threats to withhold funding from state and local fair housing enforcement agencies for following state laws, as well as attempts to impose new conditions on federal funding.

The coalition argues that these actions could weaken the nation’s fair housing enforcement system and undermine states’ ability to ensure equal access to housing. The attorneys general say that by threatening to cut off funds, HUD is putting at risk important protections for residents across the country.

ā€œThis Administration is nothing if not consistent in its attempts to make life much harder for the vast majority of Americans,ā€ said Attorney General Neronha. ā€œFor decades, HUD has worked in tandem with state agencies to root out discriminatory housing practices. We know this President isn’t guided by morality but by perceived political expedience. Even so, it’s hard to wrap one’s mind around why he thinks making it harder for Americans to obtain housing would fit into that category. HUD’s new guidance ignores the states’ right to enact laws that make sense for its residents, and unlawfully attempts to hold hostage federal funding from those who don’t capitulate. There are few things more important than housing, and we will fight to make sure these longstanding protections stay intact.ā€

The Fair Housing Act was enacted sixty years ago by Congress to address widespread discrimination in housing. As part of this effort, Congress created the Fair Housing Assistance Program (FHAP), which established partnerships between HUD and state or local agencies for enforcing civil rights laws related to housing. Through FHAP, partner agencies receive federal funds used for investigating complaints, training staff, and supporting community outreach.

In September 2025, HUD issued guidance threatening FHAP agencies with decertification and loss of funding unless they stopped enforcing certain protections—such as those based on sexual orientation, gender identity, language access, criminal records, or source of income—that are included in many state laws but not explicitly covered under federal law. The guidance also restricts agencies from pursuing claims about seemingly neutral policies that have a discriminatory impact on specific groups.

In Rhode Island specifically, the Rhode Island Commission for Human Rights enforces broad antidiscrimination provisions under state law through its participation in FHAP. The new policy puts this agency at risk of losing its certification because Rhode Island law protects more classes than those recognized by current federal guidelines.

The attorneys general further allege that HUD’s recent actions violate both the Spending Clause of the U.S. Constitution and the Administrative Procedure Act governing how federal rules are changed. They also point out that these changes come after significant reductions in HUD’s own enforcement capacity.

Joining Neronha in this legal action are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, Vermont, Washington State and the District of Columbia.



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