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The US Department of Housing and Urban Development (HUD) is halting grants to nonprofit organizations tasked with investigating and litigating cases involving compliance with the Fair Housing Act.

The Associated Press, sourcing its coverage from “documents and information” it obtained, reports the grants were part of HUD’s Fair Housing Initiatives Program and are largely worth $425,000 per year. HUD’s cancellations were attributed to the White House and the Department of Government Efficiency.

Nonprofits processed 75% of the roughly 34,000 fair housing complaints filed in 2023, with the remaining share processed by state, local and federal agencies – albeit with the latter, HUD and the US Department of Justice together only processed less than 6% of these cases.

But with the beginning of the Trump administration, nearly half of the 162 active grants going to the nonprofits handling these duties are slated for cancellation. Nikitra Bailey, executive vice president at the National Fair Housing Alliance, stated some nonprofits will need to lay off workers and cut back on their services because of their heavy reliance on grant funds.

“It’s doing it at a time when Americans want to see an end to the barrage of rising housing costs and a lack of housing supply,” Bailey said. “They need increased support and intervention from our federal government, not a withdrawal from basic civil rights.”

A HUD spokesperson responded to the report with a statement that said, “The Department is responsible for ensuring our grantees and contractors are in compliance with the President’s Executive Orders. If we determine they are not in compliance, then we are required to take action. The Department will continue to serve the American people, including those are facing housing discrimination or eviction.”