The Chicago Housing Authority (CHA) is suing the U.S. Department of Housing and Urban Development (HUD), seeking immediate intervention from the court regarding new conditions HUD has placed on the CHA’s federal funding.
As part of the annual application to receive continued federal operating subsidies for public housing units, HUD is, for the first time, requiring Public Housing Authorities to certify that federal funds will not be used to fund or promote “diversity, equity and inclusion mandates, policies or programs,” gender ideology; elective abortions; and immigration-related policies.
Earlier this year, HUD cancelled $4 million in contracts promoting DEI, saying that the cuts were part of the department’s larger $260 million review of all contract expenditures.
The terminated contracts were intended for “DEI culture transformation,” including outward mindset training and diversity and inclusion research subscription services.
Policy Shifts at HUD
“It is inexcusable the American taxpayer was footing the bill for the promotion of DEI propaganda. Not only was this costing millions of taxpayer dollars but it was also wasting valuable time that should have been used to better serve individuals and families in rural, tribal and urban communities. DEI is dead at HUD,” Secretary Scott Turner said when the action was taken.
According to CHA, the HUD certifications cite several recent Executive Orders but provide no additional information or clarification on these requirements beyond the language in the application. The deadline for CHA to submit the signed application is Oct. 21, 2025.
“CHA is seeking a temporary restraining order to lift the mandatory certification requirement from the application in advance of the forthcoming deadline, so that the agency can focus on its vision of quality affordable housing where everyone feels welcome,” the agency said in a press release.
At issue is the federal Operating Subsidy Grants that the agency was expecting to receive in December. The grants of $185 million were to account for more than 13% of CHA’s proposed fiscal 2026 operating budget. But the agency expects HUD to impose these certifications across additional federal funds and programs, which could implicate more than $1 billion in federal funding for CHA.
