Federal Judges Push Back On HUD, CFPB Upheaval
Federal judges are pushing back against changes at the government agencies that empower and protect homebuyers.
A federal judge in Massachusetts issued a temporary order to stop the Department of Housing and Urban Development’s cancellation of fair housing grants.
Four member organizations of the National Fair Housing Alliance filed a class action lawsuit on March 13, arguing the loss of their grants caused “an immediate and devastating impact,” including layoffs and unexpectedly closing offices.
The organizations were told in a letter that their funding was being revoked because it “no longer effectuates the program goals or agency priorities.”
According to the lawsuit, HUD cut their funds at the direction of Elon Musk’s DOGE.
The groups’ lawyers argue that because he grants were authorized by Congress, “DOGE lacks the authority to direct HUD to cancel grants, and HUD cannot follow such directives.”
Judge Richard G. Stearns of Massachusetts ruled that HUD must immediately restore the grants and barred the department from terminating any others unless strict conditions are met.
The order is set to remain in effect for 14 days.
“We are grateful for today’s decision granting a temporary restraining order, halting the wrongful and unlawful termination of FHIP grants to fight housing discrimination,” Lisa Rice, president and CEO of the NFHA, said in a statement. “This action, taken by HUD at the direction of its internal DOGE task force, is endangering everyday people while empowering wealthy landlords and others to discriminate.”
In another case, a federal judge ordered the reinstatement of Consumer Financial Protection Bureau employees who were let go last month by Acting Director Russell Vought.
A “sweeping” ruling in the form of a temporary injunction from Judge Amy Berman Jackson at the U.S. District Court in D.C. also stops the administration from firing any more workers and from deleting any of the agency’s records.
The move has been lauded as protection for the CFPB, which Republicans and the Trump administration want to eliminate.
“Today’s victory blocks the unprecedented plan to dismantle the CFPB — an agency that Congress created to protect Americans’ financial security. This ruling upholds the Constitution’s separation of powers and preserves the Bureau’s vital work,” Deepak Gupta, a lawyer representing the CFPB’s union, told NPR in an email.
“We’re heartened by the decision and look forward to continuing to press our case in court,” he added.