NJ AG Sues Trump Administration Over Civil Rights Laws

AG: New Jersey News

Filed March 16th, 2026

Detected March 18th, 2026

Summary

New Jersey Attorney General Jennifer Davenport, leading a coalition of 16 attorneys general, has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD). The suit challenges HUD's alleged unlawful actions, including threats to withhold funding from state and local fair housing agencies due to state civil rights laws protecting LGBTQ+ individuals.

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What changed

New Jersey Attorney General Jennifer Davenport, alongside a coalition of 16 other state attorneys general, has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD). The lawsuit challenges HUD's alleged unlawful actions, specifically targeting guidance issued in September 2025 that threatens to withhold funding from state and local fair housing enforcement agencies. The core of the dispute lies in HUD's attempt to penalize states whose civil rights laws offer greater protections, such as those covering LGBTQ+ individuals, than federal law, thereby undermining the Fair Housing Assistance Program (FHAP) partnership.

This action requires immediate attention from compliance officers overseeing housing and civil rights matters. Regulated entities, particularly those involved in housing and receiving federal funding, should monitor the litigation's progress. While no specific compliance deadline is mentioned, the lawsuit aims to halt the alleged unlawful actions by HUD, implying a need to understand the potential impact on existing funding agreements and state-level enforcement capabilities. Failure to comply with federal fair housing laws or state-specific protections could lead to enforcement actions by state or federal authorities.

What to do next

Review state civil rights laws for protections beyond federal mandates.
Assess current HUD funding agreements for potential impacts from this litigation.
Monitor legal developments regarding the Fair Housing Assistance Program (FHAP).

Source document (simplified)

Attorney General Davenport Sues Trump Administration to Stop Assault on States’ Civil Rights Laws

For Immediate Release: March 16, 2026

Office of the Attorney General
– Jennifer Davenport, Attorney General

For Further Information:

Media Inquiries-
Allison Inserro
OAGpress@njoag.gov

TRENTON – Attorney General Jennifer Davenport today joined a coalition of 16 attorneys general in filing a lawsuit challenging unlawful actions by the U.S. Department of Housing and Urban Development (HUD), including threats to withhold funding from state and local fair housing enforcement agencies because the state civil rights laws protect LGBTQ+ New Jerseyans and to impose other illegal conditions on HUD funding. These actions threaten to upend America’s fair housing enforcement system and undermine states’ ability to ensure equal access to housing for all New Jerseyans.

“Housing is the biggest expense most New Jerseyans face, and that affordability crisis shouldn’t be made even worse by discrimination. It is bad enough that the federal government has largely abandoned efforts to combat housing discrimination, but the Administration should not also inhibit states from protecting our residents,” said Attorney General Davenport. “To withhold funding, and allow such discrimination to go unchecked, is profoundly wrong.”

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.

In their lawsuit being filed today, Attorney General Davenport and the other attorneys general allege that the Trump Administration is seeking to illegally undermine this partnership by attacking states’ ability to participate in the program based on their state laws being more protective than federal law.

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 New Jersey Division on Civil Rights and partner agencies in other states, threatening to decertify them from the program and cut off funding unless they stop enforcing crucial protections against discrimination based on sexual orientation and gender identity. The guidance also bars agencies from pursuing claims targeting housing practices that may appear neutral but, in reality, have a discriminatory disparate impact on certain populations. In New Jersey 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 Davenport and the attorneys general assert that the Administration’s actions will sow confusion over enforcement and raise the costs of enforcing state and federal fair housing laws in their states in violation of the Spending Clause of the U.S. Constitution and the federal Administrative Procedures Act.

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 brings. The agency also fired employee whistleblowers after they publicly sounded the alarm about the Trump Administration’s decimation of fair housing enforcement.

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

A copy of the lawsuit is available at this link: View Complaint.