WASHINGTON – A federal judge temporarily preserved nearly $56 million in federal housing-counseling grants while a lawsuit joined by the North Carolina Housing Coalition proceeds, preventing the money from expiring as the court considers broader relief.
U.S. District Judge Jia Cobb issued the order late Wednesday in Washington. The order suspended a Sept. 30 deadline that otherwise would have caused the disputed money to lapse and return to the Treasury. Cobb did not decide whether the plaintiffs ultimately are entitled to an injunction or whether the administration acted unlawfully.
The National Urban League and nine other nonprofits filed the lawsuit Sept. 29 against the Trump administration, the U.S. Department of Housing and Urban Development and the Office of Management and Budget. The federal docket lists the North Carolina Housing Coalition among the plaintiffs.
The North Carolina coalition said the state stands to lose $1 million in counseling funds if the cancellation takes effect. It said the money supports first-time homebuyer education, foreclosure-prevention assistance and other housing counseling delivered through organizations across the state.
The plaintiffs argue that HUD unlawfully reversed a longstanding grant policy, withheld money appropriated by Congress and targeted recipients for viewpoints the administration opposes. Those are allegations in the lawsuit, not findings by the court.
The White House has defended the rescissions as part of a broader effort to cut spending it considers wasteful or tied to diversity, equity and inclusion initiatives. Reuters reported that the administration referred a request for comment on the case to OMB, which did not immediately respond.
The court’s temporary action preserves the disputed funds while the case advances. Reuters reported that responses from the plaintiffs and government are scheduled through Oct. 19.
The order does not award the grants, resolve the constitutional and administrative-law claims or establish that any North Carolina organization will receive a particular amount. It prevents the funding deadline from making the broader dispute moot before the judge can consider additional relief.
Sources
- Reuters: federal judge preserves housing-counseling grants during legal challenge
- Federal court order: housing-counseling funds preserved pending preliminary-relief review
- NC Newsline: North Carolina Housing Coalition joins HUD grant lawsuit
Photo Credit: HUD staff via the U.S. National Archives and Wikimedia Commons, public domain in the United States. Robert C. Weaver Federal Building, HUD headquarters, photographed April 9, 2009. Cropped and resized, then combined with the unchanged NCPN footer and logo.
Editor’s Note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.