HUD flails in push for DEI limits to housing

A federal judge in Oakland declined the Trump administration's motion to dismiss the lawsuit, filed by several cities' housing authorities.(CN) — A federal judge on Monday declined a motion to dismiss a lawsuit filed by a number of cities aimed at taking down an executive order issued by President Donald Trump which would have blocked housing agencies from receiving federal money if they implement policies that promote diversity, equality and inclusion.The federal government had argued that the lawsuit, filed by the cities of Los Angeles, San Francisco, San Diego, Baltimore and Salem, Colorado, was duplicative of another lawsuit which challenged the DEI limits but as applied to a different set of grants.“The two suits challenge identical grant conditions imposed on distinct grants received by distinct entities,” U.S. District Judge Jon Tigar wrote in his ruling denying the motion. “Indeed, those conditions have been widely imposed on federal grants and have spurred innumerable lawsuits across the country.”Tigar also denied a motion to move the case to Washington state, where the prior lawsuit is taking place — largely for the same reason: “The two suits challenge identical grant conditions imposed on distinct grants received by distinct entities. Indeed, those conditions have been widely imposed on federal grants and have spurred innumerable lawsuits across the country.”The case is still active and can now proceed to trial.In May 2025, a similar collection of cities that included Portland by not Salem sued to block the DEI limits as applied to certain grants from the Department of Housing and Urban Development. Some of the grants were aimed at fighting homelessness, promoting community renewal and providing housing for people living with AIDS. A federal judge has issued a preliminary injunction, still in effect, blocking those limits from being put into place.The other case, in Northern California, concerns a different set of federal funding programs: Operating Subsidy, Capital Fund, Family Self-Sufficiency, and Multifamily Housing Service Coordinator. The cities sued this past October and three days later, Tigar issued a temporary restraining order finding the conditions imposed on the housing agencies “vague” and “without guidance.”The federal government then filed a motion to either dismiss the complaint or move the case to Washington state, arguing the plaintiffs who are involved in both lawsuits, including San Francisco and and LA, had “impermissibly split their claims” between the two districts. Tigar rejected the argument. “Defendants hang their hats on overlapping relief that is simply not present. Because the two suits concern distinct plaintiffs and grants, the rights and interests established by the two actions are distinct and the two suits do not arise out of the same transactional nucleus of fact,” he wrote.The parties did not respond to requests for comment on the ruling by press time.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads