Attorney General Kwame Raoul announced on Mar. 16 that he is co-leading a coalition of 16 attorneys general in filing a lawsuit against the Department of Housing and Urban Development (HUD). The suit challenges HUD’s actions threatening to withhold funding from state and local fair housing agencies for enforcing their own state laws, as well as imposing what the coalition calls illegal conditions on federal funding.
The issue centers on states’ ability to enforce protections against housing discrimination. The attorneys general argue that HUD’s recent guidance could weaken fair housing enforcement nationwide and make it harder for vulnerable groups to access equal housing opportunities. “These actions are part of a broader, ongoing effort by the Trump administration to subvert the legal protections our country has put in place to combat discrimination and to tear down the hard-fought progress we have made for civil rights,” Raoul said. “Courts have consistently rejected the administration’s attempts to use congressionally mandated programs to coerce states into adopting President Trump’s preferred policies. I will continue to fight for fair access to housing for all Americans and for the rule of law.”
The Fair Housing Act, passed sixty years ago, established a partnership between HUD and state agencies through the Fair Housing Assistance Program (FHAP) to address discrimination in housing. According to Raoul, this program has enjoyed bipartisan support since its creation in 1980. Through FHAP, HUD refers complaints about housing discrimination to state partners who receive federal funds for investigations, staff training, and outreach.
In September 2025, HUD issued guidance threatening Illinois and other states with decertification from FHAP unless they stopped enforcing certain anti-discrimination protections found in their own laws—such as those based on sexual orientation, gender identity, language, criminal records, or source of income. The new guidance also restricts agencies from pursuing cases where neutral-seeming practices have discriminatory effects on specific populations.
Raoul and his colleagues allege that these moves will increase costs for states trying to enforce both federal and state fair housing laws while creating confusion due to vague requirements attached to funding. They further claim that HUD has already weakened its own enforcement capacity by reducing staff numbers and case volume—a point raised after whistleblowers were reportedly fired following public criticism of these changes.
The Illinois Attorney General has advocated for vulnerable groups including workers, immigrants, and seniors according to the official website. The office handles thousands of consumer complaints each year according to the official website, aims to protect consumers while promoting safer communities and advocating for environmental issues according to the official website, extends advocacy efforts across Illinois according to the official website, partners with law enforcement agencies according to the official website, and offers services such as complaint filing related to consumer fraud or civil rights violations according to the official website.
The coalition’s lawsuit claims that HUD’s actions violate both constitutional spending rules and federal administrative law governing agency procedures. Attorney General Rob Bonta of California joined Raoul in leading this effort alongside attorneys general from Arizona, Colorado, Connecticut, Delaware, Washington D.C., Hawaii, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, Vermont and Washington.
