We joined nine plaintiffs suing the Trump administration. Yesterday, a court paused the funding cutoff.
Federal housing counseling funds are protected, for now. Yesterday, a judge ordered the delay of the expiration of $56 million in funding for HUD’s housing counseling program.
This is a critical first step, but not a final outcome. The order is temporary while the court considers the full case. For now, funding that supports and stabilizes individuals, families, and communities remains protected and available for disbursement later on, depending on additional legal proceedings.
Here is how we reached this point:
Last Friday (September 25), the White House announced that they were clawing back nearly $1 billion in funds already appropriated by Congress in what is called a pocket rescission. This pocket rescission includes the $56 million in funding for HUD’s housing counseling program that is at stake in our lawsuit.
Housing Action Illinois was named in the White House press release, which describes us as a “radical left NGO that believes ‘housing is a human right,’ and is committed to ‘advancing equitable community development and affirmatively furthering racial justice.’”
Housing Action Illinois administers HUD housing counseling funding on behalf of 38 affiliate housing counseling agencies working across eight states and Washington D.C. to provide first-time homebuyer education, foreclosure prevention assistance, and other services to help families find and keep stable homes.
The housing counseling program has bipartisan support. However, the $56 million targeted for cancellation is almost all of the program’s FY25 funding.
On Tuesday (September 29), Housing Action Illinois joined nine plaintiffs from across the country in filing a federal lawsuit against the Trump administration. The suit alleges that this funding cancellation violates the First Amendment and federal law, including the Administrative Procedure Act. You can read the full press release here.
The situation is evolving quickly, and we will provide updates as we can, although we’re relieved to have been able to preserve this funding for now.
Thank you for your support as we continue our work to ensure that everyone in Illinois and beyond has a safe, affordable place to call home.