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A federal judge has issued a temporary restraining order against the Department of Housing and Urban Development (HUD) with the demand that it resume distributing Fair Housing Initiative Program (FHIP) funds to state- and city-level nonprofits tasked with investigating and litigating cases involving compliance with the Fair Housing Act.

In March, HUD halted the FHIP grant program as part of the Department of Government Efficiency’s cost-cutting regimen. The majority of the nonprofits receiving the funds have annual budgets of less than $1 million and rely heavily on the grants to operate.

The National Fair Housing Alliance (NFHA) and the Tennessee Fair Housing Council filed a class action complaint against HUD and Secretary Scott Turner in the US District Court for the District Columbia, stating the department was “flouting its obligation to administer a fair housing grant program established and funded by Congress.” The lawsuit also insisted HUD’s “abdication of duty will inflict devastating harm” against the nonprofits if they fail to receive the grants by the Sept. 30 deadline for congressionally approved fund distribution.

District Judge Sparkle L. Sooknanan, a Biden appointee, gave HUD an Aug. 4 deadline to report how it planned to meet its fiscal year obligations on FHIP grant distribution. The restraining order is in effect through Aug. 11.

“If HUD is correct, it is free to ignore duly enacted and constitutional statutes directing it to award millions of dollars in grant funding by a certain date and this court is powerless to hear the dispute or take steps to ensure compliance with the statutes,” Sooknanan wrote. “That is not the law.”

HUD did not issue a public comment on the ruling.