Despite a series of court rulings involving federal fair housing funding, housing advocates remain concerned about the future of programs that investigate discrimination and help people understand their housing rights.
On Aug. 26, U.S. District Judge Myong J. Joun blocked changes by the Department of Housing and Urban Development to its Fair Housing Initiatives Program, or FHIP.
The disputed funding structure would have directed much of the available money toward five large awards rather than the more than 100 grants traditionally awarded to community-based fair housing organizations.
Joun found HUD had not adequately explained the changes or considered the reliance of existing fair housing organizations and the communities they serve. The court ordered HUD to distribute the FY2025 funds using the previous funding structure.
“It belies credulity to think that five awards alone could broaden and strengthen fair housing work across the nation,” Joun wrote.
The ruling followed earlier legal disputes over FHIP funding. Fair housing organizations have repeatedly gone to court challenging HUD decisions involving grants and congressionally appropriated funding.
“When someone is wrongfully turned away from a housing opportunity because they have experienced domestic violence, because of a disability, their gender, or the color of their skin, they don’t call Washington,” said Lisa Rice, president/CEO of the National Fair Housing Alliance.
“They call the fair housing organization in their community.”
The latest ruling provides immediate relief to local organizations, but advocates remain concerned about federal funding beyond the current fiscal year.
HUD’s FY2027 budget request proposes $26 million for Fair Housing activities, compared with $86.4 million appropriated for FY2026. The proposed funding would support the Fair Housing Assistance Program, which provides grants, training and assistance to state and local civil rights enforcement agencies.
HUD says it remains committed to enforcing federal fair housing laws. In June, the department announced 15 enforcement actions involving allegations including disability discrimination, sexual harassment, discrimination against families with children and violations of protections for domestic violence victims.
Private nonprofit organizations also play a significant role in investigating discrimination. The Fair Housing Initiatives Program supports organizations that conduct complaint intake, testing, investigations, referrals, and enforcement. It also supports education designed to help consumers and housing providers understand fair housing laws.
The National Fair Housing Alliance says community-based organizations handle nearly three-quarters of the nation’s housing discrimination complaints.
NFHA reported 32,321 housing discrimination complaints nationwide in 2024, one of the highest totals in more than two decades. More than 83% involved rental housing.
Those numbers have particular implications for Black Americans. With Black homeownership continuing to trail the national rate, Black households are more likely to rent and therefore can be particularly affected by discrimination in the rental market.
Fair housing advocates say the issue extends beyond obtaining a house or apartment. Where families live can affect access to schools, health care, transportation, employment, internet service and other resources.
For advocates, the recent court decisions have preserved funding for organizations that enforce fair housing protections at the community level. The larger debate over how those programs should be funded and administered, however, is continuing.
(Charlene Crowell is a senior fellow with the Center for Responsible Lending.)
