HUD Faces New Lawsuits Over HQ Relocation, Fair Housing Funds

by | Jul 29, 2026 | 0 comments

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The Department of Housing and Urban Development (HUD) has been hit with a pair of new lawsuits, one trying to stop the relocation of its headquarters and the other trying to block its new fair housing funding policies.

The District of Columbia is suing HUD, Ginnie Mae and the General Services Administration to stop the department’s relocation to a property in Alexandria, Virginia, that previously housed the National Science Foundation. Most of HUD’s and Ginnie Mae’s employees are already working at the Virginia site.

In its lawsuit, the District claimed the move violated the Residence Act of 1790, which mandates federal offices tied to the seat of government operate out of the nation’s capital unless Congress authorizes a relocation. The lawsuit added HUD’s founding statute included that mandate and was not approved by Congress.

The District’s lawsuit includes additional complaints that the move did not include environmental and economic studies, and it claims the District will lose nearly $2 million a year in sales tax revenue with the relocation of HUD’s staff. The District is seeking to void the relocation and force HUD and Ginnie Mae to remain in Washington.

Separately, HUD is facing a lawsuit from fair housing advocacy groups that claimed the departments recently released notices of funding opportunities will severely reduce the financing they receive from the Fair Housing Initiatives Program (FHIP).

In their lawsuit, the fair housing groups argued the new criteria was an “assault” on the program that “will disqualify nearly all existing fair housing organizations” from FHIP funding. This is the third lawsuit filed against HUD over FHIP funding since the start of the second Trump administration.

HUD did not publicly comment on either lawsuit.

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