A federal judge has let five cities proceed with their challenge to President Trump’s executive order blocking housing funds from agencies with diversity programs, rejecting the administration’s attempt to consolidate the case with similar litigation elsewhere.
U.S. District Judge Jon Tigar in Oakland ruled Monday that lawsuits from Los Angeles, San Francisco, San Diego, Baltimore and Salem, Colorado don’t duplicate an earlier challenge in Washington state. The cities receive different grants than those covered in the prior case, making their claims distinct despite challenging identical conditions.
“The two suits challenge identical grant conditions imposed on distinct grants received by distinct entities,” Tigar wrote. “Indeed, those conditions have been widely imposed on federal grants and have spurred innumerable lawsuits across the country.”
Administration Wanted Single Venue for DEI Cases
The Trump administration had argued the California lawsuit should be dismissed as duplicative or transferred to Washington state, where federal officials are already defending the executive order in court. Consolidating cases would have given the government a single legal front to defend policies that tie federal housing dollars to restrictions on diversity initiatives.
Judge Tigar rejected both arguments, ruling the cases involve different grants to different entities and should proceed separately. The decision keeps the California litigation on track in the Northern District, where housing officials from major West Coast cities will argue the order illegally conditions federal funding.
What Happens Next for Housing Agencies
The ruling means housing authorities in California’s largest cities can continue receiving federal funds while their lawsuit moves forward. Unless the administration appeals or secures a stay, the challenged grant conditions remain contested but not yet struck down.
Similar challenges to Trump’s executive order restricting DEI policies are playing out in federal courts nationwide. Tigar’s acknowledgment that “innumerable lawsuits” have resulted from the conditions suggests the administration faces a protracted legal battle across multiple jurisdictions before the policy’s future is resolved.
The cities argue the order exceeds presidential authority and violates their rights to set local housing policy. The administration maintains it has broad discretion over federal grant conditions.
Key Points
- Federal judge denied Trump administration motion to dismiss lawsuit by five cities challenging executive order that blocks housing funds from agencies with diversity programs
- Judge Jon Tigar ruled the California case involves different grants than prior Washington lawsuit, rejecting government’s consolidation argument
- Housing authorities in Los Angeles, San Francisco, San Diego, Baltimore and Salem can proceed with challenge while continuing to receive federal funds
https://www.courthousenews.com/hud-flails-in-push-for-dei-limits-to-housing/ – September 15, 2026
