Michigan Attorney General Dana Nessel joined a coalition of 16 attorneys general in filing a lawsuit on Mar. 17 against the Department of Housing and Urban Development (HUD), challenging recent actions that threaten to withhold funding from state and local fair housing agencies for enforcing state laws. The lawsuit alleges that HUD’s new guidance imposes illegal conditions on funding and undermines states’ ability to ensure equal access to housing.
The issue is significant because it could weaken protections against housing discrimination, especially for vulnerable communities. If the federal government’s actions go unchallenged, the attorneys general argue that discrimination in housing is likely to increase.
“The Trump administration’s attempt to undermine fair housing protections is not only illegal but also puts vulnerable communities at even greater risk,” said Attorney General Nessel. “My office will continue to defend Michigan residents from unlawful discrimination and protect our state’s authority to enforce our laws.”
The Fair Housing Act, enacted sixty years ago, established a partnership between HUD and state agencies through the Fair Housing Assistance Program (FHAP). This program allows HUD to refer allegations of housing discrimination to state partners for investigation and provides funding for complaint processing, staff training, and community outreach. In September 2025, HUD issued guidance threatening to decertify FHAP agencies unless they stopped enforcing certain protections found in many state laws, including those related to sexual orientation, gender identity, language access, criminal records, and source of income. The guidance also restricts agencies from addressing discriminatory practices that may appear neutral but have disparate impacts.
Nessel and her colleagues argue that these changes would raise enforcement costs and create confusion due to vague requirements. They further allege that HUD has reduced its own enforcement capacity by cutting staff and charging fewer cases while firing whistleblowers who raised concerns about these reductions.
The coalition claims that HUD’s actions violate both the Spending Clause of the U.S. Constitution and the Administrative Procedure Act. Joining Nessel are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, New Jersey, Rhode Island, Vermont and Washington.
According to the official website, the Michigan Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations. The department also focuses on serving Michigan residents through public service initiatives and protection measures according to its official website. Dana Nessel has served as Michigan’s 54th attorney general according to the official website. The department exercises statewide authority throughout Michigan to safeguard residents according to its official website.
Looking ahead, Nessel said her office will continue defending Michigan residents from unlawful discrimination while protecting state authority over fair housing laws.
