New Jersey Attorney General Jennifer Davenport says the Trump administration is unlawfully threatening housing enforcement funding tied to LGBTQ protections.
Trenton, NJ – New Jersey Attorney General Jennifer Davenport has joined a coalition of 16 attorneys general in filing a lawsuit against the Trump administration, challenging actions by the U.S. Department of Housing and Urban Development that the states say threaten civil rights protections and fair housing enforcement.
The lawsuit alleges that HUD is attempting to withhold federal funding from state and local fair housing enforcement agencies if they continue enforcing state laws that include protections for LGBTQ residents.
Key Points
- New Jersey joined 16 states in suing the Trump administration over HUD funding rules.
- The lawsuit claims HUD threatened to cut funding tied to fair housing enforcement programs.
- State officials say the move targets protections for LGBTQ residents under state civil rights laws.
Dispute centers on federal housing enforcement program
The legal challenge focuses on the Fair Housing Assistance Program (FHAP), a federal initiative that allows HUD to partner with state and local agencies to investigate housing discrimination complaints.
Through the program, HUD refers discrimination cases to participating state agencies, which receive federal funding to investigate complaints, train staff, and conduct outreach efforts.
According to the lawsuit, HUD issued guidance in September 2025 warning state agencies that they could be removed from the program and lose funding if they continue enforcing certain housing discrimination protections based on sexual orientation and gender identity.
In New Jersey, those protections are included in state civil rights laws and enforced by the Division on Civil Rights.
New Jersey attorney general criticizes federal action
Davenport said the federal guidance threatens states’ ability to enforce their own housing discrimination laws.
“Housing is the biggest expense most New Jerseyans face, and that affordability crisis shouldn’t be made even worse by discrimination,” Davenport said in a statement. “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.”
The lawsuit argues that the federal government cannot impose new conditions on funding that conflict with existing state laws.
Coalition of states joins legal challenge
Joining New Jersey 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.
The states argue the policy could disrupt the national fair housing enforcement system and increase the cost and complexity of investigating discrimination complaints.
According to the complaint, HUD’s actions also come as the agency has reduced staffing levels and decreased the number of housing discrimination cases it pursues.
The lawsuit seeks to block HUD from withholding funding from states that maintain broader housing protections than federal law.
