Judge temporarily blocks Trump administration from restricting NYC housing funding

A federal judge has temporarily blocked Trump administration efforts to withhold funding for housing assistance across the country, including for thousands of New York City families, according to local officials and court records.

The city and seven other jurisdictions sued the administration in Seattle District Court last week, challenging what they called “unlawful conditions” on the funding, which supports organizations that help house vulnerable populations. The lawsuit alleged the U.S. Department of Housing and Urban Development had tried to restrict millions of dollars in grants by making cities pledge not to promote “gender ideology,” diversity initiatives or sanctuary immigration policies, all of which the administration opposes.

Judge Barbara Rothstein on Wednesday issued a temporary restraining order preventing the administration from imposing the restrictions for now. She ruled the plaintiffs had shown a likelihood that each of the conditions violates the Constitution’s separation of powers because they “were not approved by Congress, are not closely related to the purposes of the grants and the programs they fund, nor … serve the purpose of making the administration of the grants more efficient and effective.”

Rothstein added that many of the conditions were likely improperly vague or “arbitrary and capricious.” “Plaintiffs have sufficiently demonstrated that unless the Court issues a TRO, they will suffer irreparable harm” to their services and budgets, she wrote.

The restraining order will remain in effect for 14 days following her decision, and a briefing schedule in the case is forthcoming. The lawsuit argues the executive branch does not have the authority to attach conditions to federal funding.

“We are pleased that the Court agreed to put an immediate hold on HUD’s illegal plan to coerce cities into adopting federal policies,” Muriel Goode-Trufant, New York City’s corporation counsel, said in a statement. “This court order means that New York City should continue to receive the grant money that was congressionally approved and previously awarded for vital social services while the case continues.”

The federal housing agency did not immediately respond to a request for comment Thursday.

The 40 grants at issue for New York City total $53.5 million this year and were set to pay out at different points, city officials said. Losing the funding would put at least 2,700 households at risk by compromising aid programs for housing, disabilities, substance abuse and family trauma, according to the city.

The funding has been in limbo for the past several months, fueling uncertainty among advocates and organizations that work to find stable housing for thousands of New Yorkers. In March, the Trump administration moved to release the grants with conditions, then reversed that decision almost immediately due to potential legal issues.

Some of the grants had been poised to start at the beginning of May, but that did not happen, according to city officials. Those grants were tied to about 170 units of housing.

David Brand contributed reporting.