Vermont Business Magazine Attorney General Charity Clark today joined a coalition of 16 attorneys general in filing a lawsuit challenging unlawful actions by the Department of Housing and Urban Development (HUD), including threats to impose illegal conditions on HUD funding and to withhold funding from state and local fair housing enforcement agencies, like the Human Rights Commission in Vermont, for abiding by state laws. These actions threaten to weaken America’s fair housing enforcement system and undermine states’ ability to ensure equal access to housing. If unchallenged, discrimination in housing is almost certain to increase.
The coalition’s lawsuit alleges that HUD’s actions violate the Spending Clause of the U.S. Constitution and the federal Administrative Procedure Act, which governs how federal agencies implement rule changes.
“It is disappointing that the Trump Administration has backed away from enforcing fair housing laws, especially given the housing crisis we are experiencing,” said Attorney General Clark. “Critically, the Administration’s actions violate federal law and state sovereignty. Vermont has its own antidiscrimination laws and it has the right to enforce those laws. With today’s lawsuit, I am standing up for our federalist system and Vermont’s values by challenging the Administration’s illegal actions.”
Sixty years ago, Congress enacted the Fair Housing Act to address pervasive housing discrimination. Congress also created a robust partnership between HUD and state and local agencies, known as the Fair Housing Assistance Program (FHAP), to enforce this landmark civil rights law in tandem with state fair housing laws. The FHAP has had strong bipartisan support in Congress and stable funding since it was established in 1980.
Through the FHAP, HUD refers allegations of housing discrimination to state and local partner agencies for investigation and enforcement. These agencies receive HUD funding, which they use to process housing discrimination complaints, train staff, and support community outreach and education.
In September 2025, HUD issued guidance to the FHAP agency in Vermont, the Human Rights Commission, and partner agencies in other states, threatening to decertify them from the program and cut off funding unless they stop enforcing crucial protections against housing discrimination based on sexual orientation, gender identity, language, criminal records and source of income. The guidance also bars agencies from pursuing claims targeting housing practices that may appear neutral but, in reality, are discriminatory and have a disparate impact on certain populations. In Vermont and many other states, these fair housing protections are enshrined in state law.
In addition to the threat to decertify partner agencies, HUD is attempting to impose vague, ideologically motivated, and unlawful conditions on program funding.
In their complaint, Attorney General Clark and the coalition of attorneys general assert that the Administration’s actions will raise the costs of enforcing state and federal fair housing laws in their states. They also argue that HUD’s vague conditions will sow confusion over enforcement.
The attorneys general note that this unlawful ultimatum comes after HUD gutted its own fair housing enforcement capabilities by slashing its headcount and significantly reducing the number of housing discrimination cases it charges. The agency also fired employee whistleblowers after they publicly sounded the alarm about its decimation of fair housing enforcement.
Joining Attorney General Clark in filing the lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, and Washington.
A copy of the complaint will be made available on our website later today.
This lawsuit is the 45th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.
3.16.2026. MONTPELIER, Vt. – Attorney General
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