San Francisco City Attorney David Chiu and seven other plaintiffs filed a lawsuit in federal court Friday challenging the U.S. Department of Housing and Urban Development.
In March, HUD sent out contracts to housing and service providers nationwide that said their federal funding would be terminated if they were found to be engaging in any activities that promote diversity, equity, and inclusion, “gender ideology,” elective abortions, and “sanctuary” immigration policies.
The contract was subsequently amended to remove any mentions of “DEI” or “sanctuary” after a slew of the president’s executive orders were challenged in courts across the country.
“These new grant conditions blatantly violate the Constitution and endanger people’s lives,” Chiu said in a statement. “This is part of Trump’s strategy to push his ideology by threatening local programs and budgets. We will continue to oppose these efforts and stand up in court for San Francisco’s values, funding, and communities.”
According to federal spending data, HUD has about $644 million in active housing grants in San Francisco. Additionally, the city is set to receive $56 million this year for 35 homelessness assistance projects under HUD’s Continuum of Care program, an annual grant since 1994.
These funds are meant to help organizations that assist vulnerable populations in achieving long-term housing stability.
For example, in the current round of approved CoC grants, the Tenderloin Neighborhood Development Corp. was awarded $1.1 million for the construction of a 70-unit affordable housing project at 180 Jones St., among other projects.
Other grantees include organizations assisting victims of domestic abuse, LGBTQ+ youth, and sober living for people recovering from addictions.
The federal grants are routed through the city’s Department of Homelessness and Supportive Housing, which then reimburses grantees for approved expenses.
Whistleblowers at HUD previously told The Standard that staffing cuts at the agency — spearheaded by the Department of Government Efficiency earlier this year — mean the local office would be ill-equipped to manage the transfer of the funds to the city even if they are paid out.
Said one: “There will be no one left to run the programs.”
With federal grants stalled, experts have repeatedly warned that San Francisco’s housing and homelessness issues will worsen as a result.
A spokesperson for the San Francisco Housing Authority, which provides vouchers for about 13,000 units and owns public housing in Potrero Hill and Visitacion Valley, said the agency relies on HUD for 96% of its funding.
Last month, officials at the San Francisco Unified School District sued to block a similar attempt by the Trump Administration to impose conditions on AmeriCorps funding, which runs volunteer service programs to help disadvantaged communities. A court temporarily blocked those conditions from going into effect as the case continues.