Chicago Housing Authority sues U.S. Department of Housing and Urban Development over new conditions for grant funding

CHICAGO (Oct.16, 2025) – Today, the Chicago Housing Authority (CHA) filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) seeking immediate intervention from the court regarding new conditions HUD has placed on the CHA’s federal funding.  

As part of the annual application to receive continued federal operating subsidies for public housing units, HUD is, for the first time, requiring Public Housing Authorities to certify that federal funds will not be used to fund or promote “diversity, equity and inclusion mandates, policies or programs,” gender ideology; elective abortions; and immigration-related policies. The HUD certifications cite several recent Executive Orders but provide no additional information or clarification on these requirements beyond the language in the application. The deadline for CHA to submit the signed application is Oct. 21, 2025.  

CHA is seeking a temporary restraining order to lift the mandatory certification requirement from the application in advance of the forthcoming deadline, so that the agency can focus on its vision of quality affordable housing where everyone feels welcome.

The lawsuit primarily focuses on the federal Operating Subsidy Grants that the agency is expected to receive in December. The grants account for more than 13 percent of CHA’s proposed FY2026 operating budget, or $185 million.  But it is anticipated HUD may impose these certifications across additional federal funds and programs, which could implicate more than $1 billion in federal funding for CHA.

On Oct. 10, 2025, the U.S. District Court for the District of Rhode Island issued a preliminary injunction in Rhode Island Coalition Against Domestic Violence, et al. v. Robert F. Kennedy Jr., et al., No. 25-cv-342-MRD-PAS (D.R.I. Oct. 10, 2025) (Dkt. No. 72). That order, finding likely violations of the Administrative Procedure Act that, among other things, expressly prohibits HUD from imposing conditions on Continuums of Care grants, Community Development Block Grants, and FVPSA Coalition grants, such as those included in the application for federal funding.  

“This lawsuit is intended to secure the future of funding for our 135,000 residents throughout the city of Chicago, including thousands of senior residents and children who rely on us. We are asking the court to step in and provide guidance on the lawfulness of the conditions HUD is seeking to impose,” said CHA Operating Chairman Matthew Brewer. “This intervention is a necessary last resort since our discussions with HUD have been limited due to the government shutdown.” 

About the Chicago Housing Authority (CHA): CHA is the third largest public housing authority in the nation and the largest single owner of rental housing in Chicago. Through its public housing and voucher programs, CHA serves 135,000 people in 65,000 households across all 77 of Chicago’s community areas. CHA’s mission is to create and sustain strong communities where seniors thrive and everyone can unlock their economic power, ensuring that every neighborhood in Chicago has quality affordable housing and everyone feels welcome. For more information, visit www.thecha.org