On March 16, 2026, Illinois Attorney General Kwame Raoul and California Attorney General Rob Bonta co-led a coalition of 16 attorneys general in filing a lawsuit against the Department of Housing and Urban Development (HUD) over guidance it issued that significantly weakens fair housing protections and makes it harder to hold landlords accountable for discrimination.   

Congress enacted the Fair Housing Act (FHA) in 1968 to address the pervasive nationwide problem of housing discrimination and tasked HUD with enforcing this landmark civil rights law. Recognizing the scope of the challenge, Congress envisioned a strong partnership between HUD and state and local agencies. This partnership has operated for decades through the Fair Housing Assistance Program (FHAP). Through the FHAP, HUD funds state and local agencies whose fair housing laws are substantially equivalent to — that is, provide at least the same protections as — the FHA, and refers housing discrimination complaints to them. State and local agencies use FHAP funds to process housing discrimination complaints, train staff, and engage in community outreach and education.  

The FHA prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. Critically, the FHA establishes a floor — not a ceiling — for protection against housing discrimination. Many states have expanded the scope of protections beyond what the FHA mandates based on traits such as gender, gender identity, sexual orientation, marital status, ancestry, source of income, and veteran or military status.   

In September 2025, HUD issued guidance threatening to decertify those agencies — thereby cutting off complaint referrals and funding — if they consider protections other than those required by the FHA, while simultaneously imposing new unlawful funding conditions. The guidance also bars agencies from pursuing claims targeting housing practices that may appear neutral but, in reality, are discriminatory and have a disparate impact on certain populations.  

In their complaint, the attorneys general assert that the administration’s actions will raise the costs of enforcing state and federal fair housing laws in their states. They also argue that HUD’s vague conditions will sow confusion over enforcement. The coalition’s lawsuit alleges that HUD’s guidance violates the Spending Clause of the U.S. Constitution and the federal Administrative Procedure Act, which governs how federal agencies implement rule changes. The lawsuit asks the court to halt the Trump administration’s implementation of the guidance.  

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. 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.Attorney General Kwame Raoul

All levels of government — local, state, and federal — should be laser focused not only on building more housing, but also ensuring that everyone can access a home free from discrimination. Unfortunately, the Trump Administration thinks otherwise. HUD, without legal authority, is effectively undermining state laws that offer stronger protections than federal law. My fellow attorneys general and I are united in our answer: not on our watch. HUD’s guidance is unlawful and would only roll back the progress we’ve made to keep our families safe from discrimination that limits where they can live.Attorney General Rob Bonta