NYC suing the Trump administration over $53.5M cut to federal housing funding

New York City has joined a coalition of eight local governments around the country suing the Trump Administration over what the cities say are unlawful strings attached to federal housing dollars.

On Friday, city officials said they were suing the federal Department of Housing and Urban Development for imposing conditions such as the removal of initiatives like “gender ideology,” diversity programs and sanctuary status. The grants in question total $53.5 million this year, the city said, for aid programs including housing, disabilities, substance abuse and family trauma.

“Cities cannot be coerced into adopting federal policies through unlawful conditions on grant funding,” Corporation Counsel Muriel Goode-Trufant said in a statement. “The new conditions the U.S. Department of Housing and Urban Development has placed on congressionally-approved and previously awarded housing grants to New York City are illegal under longstanding constitutional and statutory principles.”

The lawsuit is the latest volley in an extended dispute between HUD and the city.

In March, the Trump administration released the tranche of funding, then reversed that decision almost immediately. HUD said cities would get the money back if they complied with the Trump administration’s policies around diversity and immigration.

But New York City, along with others like Los Angeles and Seattle, says in the lawsuit the conditions are illegal. HUD did not immediately respond to a request for comment.

The mayor’s office in the past has distanced itself from its own law department as Mayor Eric Adams tries to maintain a cordial relationship with President Donald Trump. The president was instrumental in getting federal corruption charges dropped against the embattled mayor. City Hall argues the corporation counsel advocates for all city government, not simply the mayor's priorities.

New York City was awarded 40 grants, and those were set to pay out at different points in the year, according to the statement. Without the funding, more than 2,700 households in the city and potentially thousands more are at risk, according to city officials.

Some of the grants were set to go into effect at the start of this month. That didn’t happen, which means 169 units of housing won’t be funded, according to city officials.

David Brand contributed reporting.