Colorado AG Joins Lawsuit Challenging HUD Funding Cuts for Fair Housing Enforcement
Summary
Colorado Attorney General Phil Weiser joined a coalition of state attorneys general in filing a lawsuit against the U.S. Department of Housing and Urban Development (HUD). The lawsuit challenges HUD's actions threatening to withhold funding from state and local fair housing enforcement agencies for adhering to state laws and imposing illegal conditions on HUD funding.
What changed
A coalition of state attorneys general, led by California and Illinois, has filed a lawsuit challenging the U.S. Department of Housing and Urban Development's (HUD) recent guidance and actions. Specifically, the lawsuit targets HUD's threats to decertify and cut off funding to state and local fair housing enforcement agencies, such as the Colorado Civil Rights Division, if they continue to enforce protections based on sexual orientation, gender identity, criminal records, and source of income. The coalition also challenges HUD's imposition of vague, ideologically motivated conditions on program funding and argues these actions violate the Spending Clause and the Administrative Procedure Act.
This legal challenge has significant implications for state-level fair housing enforcement. Regulated entities, particularly government agencies involved in housing, should be aware that HUD's actions are being contested. The lawsuit aims to preserve states' ability to enforce their own fair housing laws and protect vulnerable populations from discrimination. While no specific compliance deadline is mentioned for regulated entities, the outcome of this lawsuit could directly impact the funding and operational scope of state fair housing programs, potentially leading to increased housing discrimination if HUD's actions are upheld.
What to do next
- Review state fair housing laws and any associated HUD funding conditions.
- Monitor legal developments in the lawsuit challenging HUD's actions.
- Assess potential impacts on fair housing enforcement capabilities and funding.
Source document (simplified)
Attorney General Phil Weiser joins coalition challenging Trump administration’s attack on state fair housing laws
March 16, 2026 (DENVER) – Attorney General Phil Weiser joined a coalition of attorneys general filing a lawsuit challenging unlawful actions by the U.S. Department of Housing and Urban Development, including threats to withhold funding from state and local fair housing enforcement agencies for abiding by state laws and to impose illegal conditions on HUD funding.
These actions threaten to weaken America’s fair housing enforcement system and undermine states’ ability to ensure equal access to housing. If unchallenged, Attorney General Weiser said discrimination in housing is almost certain to increase.
“The Trump administration is seeking to illegally undermine the federal/state fair housing enforcement partnership by attacking states’ ability to combat housing discrimination under their own enacted state laws. HUD’s actions will limit access to housing in Colorado and send a wrong message that certain forms of unlawful discrimination are now acceptable. We are suing so that states can stay on the beat as the Trump administration wrecked its fair housing enforcement capabilities,” Attorney General Weiser said.
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, or 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 Colorado Civil Rights Division at the Colorado Department of Regulatory Agencies 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 are discriminatory and have a disparate impact on certain populations. In Colorado 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, the 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 create 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.
The coalition’s lawsuit alleges that HUD’s guidance violates the Spending Clause of the U.S. Constitution and the federal Administrative Procedure Act, which governs how federal agencies implement rule changes.
California Attorney General Rob Bonta and Illinois Attorney General Kwame Raoul are leading the coalition. Joining the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, Vermont and Washington.
The complaint will be available on coag.gov/defending-colorado after it is on file.
Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov
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