New York Sens. Kirsten Gillibrand and Chuck Schumer are among 21 senators asking a federal appeals court to leave in place a ruling that blocked changes to a program that funds private fair housing groups. The dispute concerns how the U.S. Department of Housing and Urban Development planned to award $56 million in fiscal 2025 Fair Housing Initiatives Program grants.
The senators filed an amicus brief Oct. 5 in a case brought by the Massachusetts Fair Housing Center and the National Fair Housing Alliance. Gillibrand announced her participation Oct. 7. The senators are not parties to the lawsuit; their brief supports the organizations opposing HUD’s request to pause a lower-court order while the case is on appeal.
What the grants fund
The program has traditionally supported private groups that investigate housing discrimination complaints, educate residents about their rights and build local enforcement capacity. In funding notices issued July 2, HUD offered no new fiscal 2025 awards for the private enforcement or education-and-outreach grant streams, according to the brief. Instead, the agency proposed directing $46 million to a capacity-building initiative and $10 million to an initiative for government agencies.
The senators argue that the plan conflicts with the Fair Housing Act and Congress’ funding instructions. Their brief says the $46 million initiative would make existing fair housing organizations ineligible and award the money to only five recipients. It also contends that state and local government enforcement has historically had a separate funding program. Those are arguments in the pending case, not findings by the appeals court.
HUD has argued in court that it has discretion over how to distribute the program’s funding. A July agency memorandum described the changes as an effort to modernize the program, expand geographic coverage and strengthen its long-term resilience. The senators dispute that rationale and warn that interrupting grants to established organizations could weaken discrimination investigations. Gillibrand said New York groups that help residents facing discrimination when renting or buying homes could be forced to close without the federal support.
Appeal continues
A federal district court vacated the disputed funding notices and directed HUD to use the previous framework, according to the senators’ filing. HUD is seeking a stay of that order from the U.S. Court of Appeals for the First Circuit. The brief asks the appeals court to deny the stay; it does not decide the underlying lawsuit or establish when grants will be paid.
The senators also point to a potential funding gap: They say fiscal 2026 grants restoring the private enforcement stream are not scheduled to begin until July 2027. Congress appropriated $56 million for the initiatives program in fiscal 2026, part of $86 million for federal fair housing programs, according to Gillibrand’s office.
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