Vermont AG Sues Trump Administration Over Fair Housing Laws

AG: Vermont Press Releases

Filed March 16th, 2026

Detected March 18th, 2026

Summary

Vermont Attorney General Charity Clark joined 16 other attorneys general in filing a lawsuit challenging the Department of Housing and Urban Development's (HUD) actions. The lawsuit alleges HUD unlawfully threatened to withhold funding from state and local fair housing enforcement agencies that comply with state laws, potentially increasing housing discrimination.

View original document View source feed page

What changed

The State of Vermont, through Attorney General Charity Clark, has joined a coalition of 16 state attorneys general in filing a lawsuit against the Trump Administration's Department of Housing and Urban Development (HUD). The suit challenges HUD's September 2025 guidance that threatened to decertify and cut off funding from state and local fair housing enforcement agencies, such as Vermont's Human Rights Commission, if they continued to enforce state-level protections against housing discrimination based on sexual orientation, gender identity, criminal records, and source of income. The coalition argues these actions violate the U.S. Constitution's Spending Clause and the Administrative Procedure Act, and undermine the federal-state partnership established by the Fair Housing Act.

This action has significant implications for regulated entities and government agencies involved in fair housing enforcement. State and local agencies that enforce fair housing laws, particularly those with protections extending beyond federal mandates, are directly impacted. The lawsuit seeks to preserve the ability of states to enforce their own fair housing laws and maintain funding through the Fair Housing Assistance Program (FHAP). Regulated entities, such as landlords and property managers, should be aware that enforcement of fair housing laws, including those based on state-specific protections, is being actively contested at the federal level, and the outcome could affect the scope and enforcement of these laws.

What to do next

Review state fair housing laws and compare them to federal protections.
Monitor the outcome of the lawsuit challenging HUD's guidance.
Ensure compliance with both federal and state fair housing regulations.

Source document (simplified)

Attorney General Clark Sues Trump Administration Over Attack on Fair Housing Laws

Category Press Releases March 16, 2026 Attorney General Charity Clark today joined 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 impose illegal conditions on HUD funding and to withhold funding from state and local fair housing enforcement agencies, like the Human Rights Commission in Vermont, for abiding by state laws. 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.

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

“It is disappointing that the Trump Administration has backed away from enforcing fair housing laws, especially given the housing crisis we are experiencing,” said Attorney General Clark. “Critically, the Administration’s actions violate federal law and state sovereignty. Vermont has its own antidiscrimination laws and it has the right to enforce those laws. With today’s lawsuit, I am standing up for our federalist system and Vermont’s values by challenging the Administration’s illegal actions.”

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.

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 FHAP agency in Vermont, the Human Rights Commission, 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 Vermont 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, Attorney General Clark and the coalition of 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.

Joining Attorney General Clark in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, and Washington.

A copy of the complaint is available on our website.

This lawsuit is the 45 th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.

CONTACT: Amelia Vath, Senior Advisor to the Attorney General, 802-828-3171