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The Chicago Housing Authority (CHA) has filed a lawsuit against the US Department of Housing and Urban Development (HUD) over new policies designed to eliminate funding for diversity, equity, and inclusion (DEI) mandates.

According to the Chicago Sun-Times, CHA argued the forced termination of DEI policies could impact up to 13% of the agency’s annual budget. CHA stated it was unable to meet HUD’s Oct. 21 deadline for grant applications because the department “provided no additional information or clarification on these requirements” beyond quoting President Trump’s executive orders calling for an end to DEI government programs.

“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,” said CHA Operating Chairman Matthew Brewer. “We are asking the court to step in and provide guidance on the lawfulness of the conditions HUD is seeking to impose. This intervention is a necessary last resort since our discussions with HUD have been limited due to the government shutdown.”

In filing the lawsuit, Chicago officials pointed to a recent case involving domestic violence and housing advocacy groups in Rhode Island sued over similar anti-DEI changes to federal grant application requirements. A district court judge temporarily restricted the new federal requirements for grants, citing potential violations of the Administrative Procedure Act that prevents the federal government from enacting specific conditions on a subset of grants.

HUD didn’t issue a public comment on the lawsuit.