Short of cash, Idaho fair-housing nonprofit sues DOGE — and makes this case for survival

An Idaho fair-housing nonprofit has joined three similar organizations in other states to sue the Trump administration over its termination of fair-housing grants the organizations depend on.

The Intermountain Fair Housing Council in Boise, which serves the entire state, joined Thursday with counterparts that serve Massachusetts, South Texas and Ohio to sue the U.S. Department of Housing and Urban Development and President Donald Trump’s Department of Governmental Efficiency, or DOGE. They say they have already let some workers go and curtailed help to people who need it, and they want grants reinstated to prevent further layoffs and service reductions.

They also want their lawsuit declared a class action on behalf of more than 60 such groups who receive over $30 million in congressionally authorized grants that were terminated abruptly on Jan. 27, a law firm representing the four plaintiffs said.

“These groups investigate housing discrimination complaints, enforce fair housing laws, assist individuals facing discrimination, educate communities about their rights, and collaborate with local governments to expand fair and affordable housing opportunities,” said a news release from Relman Colfax, a Washington, D.C., law firm that specializes in civil-rights cases.

The Idaho council already had received three HUD grants totaling $509,000 when not-yet-received grant money totaling $120,000 was cut off, the lawsuit said. The council has nine full-time employees and an annual operating budget of less than $1 million, about 90% of which comes from the grants, the lawsuit said.

1 employee laid off; more job cuts could follow

The council already has laid off one staff member who handled intake, investigations, education and outreach, and who was the staff’s only Swahili speaker, the lawsuit said.

“If the grants are not reinstated in 30 days, it will have to do further layoffs, including layoffs of four additional full-time staff,” the lawsuit said. The council may have to close in three to four months unless the grant terminations are rescinded, it said.

According to the lawsuit, the council was in the middle of testing and investigating multiple housing complexes alleged to have unsafe levels of lead and other heavy metals, resulting in the poisoning of many residents, including women of childbearing age, children, people with disabilities and Indigenous communities.

“It had already conducted several trips and over 15 tests and had additional tests planned,” the lawsuit said. Without restoration of funding, the council “will have to end this investigation, and the resources it previously invested will be wasted.”

Zoe Ann Olson, executive director of the council, said it has served all 44 Idaho counties for over 30 years, helping people facing housing discrimination, instability or homelessness.

“Many are from communities that are oftentimes overlooked and underserved: rural communities, immigrant communities, veterans, the disabled, and the elderly, to name a few,” she said in the law firm’s release.

The federal money “has been critical for ensuring that individuals and families have access to the resources and advocacy they need,” Olson said. “Without this support, thousands risk being left without protection or recourse. Losing these resources sends a dangerous message that fair housing protections for Idahoans and beyond are no longer a national priority.”

The four housing organizations receive their money under HUD’s Fair Housing Initiatives Program, authorized by the Fair Housing Act of 1968.

HUD has praised Idaho agency’s work, lawsuit says

The lawsuit said, “HUD has repeatedly praised the IFHC for its work; since 2020, it has received exclusively ‘excellent’ grades from HUD for its performance under the grants. … The IFHC has never received any communication from HUD that its performance or compliance with the terms and conditions of the grant was anything less than satisfactory.”

The law firm has asked the federal court in Massachusetts, where the lawsuit was filed, to issue a temporary restraining order to keep the grants coming.

The administration’s freeze on grants is the subject of other lawsuits, too. A federal judge in Washington, D.C., issued a temporary restraining order on Jan. 28, the day after the freeze was imposed, and that judge on Feb. 25 imposed a preliminary injunction against the freeze, saying the nonprofits that sued are likely to succeed. A federal judge in Rhode Island issued a similar injunction Thursday in a lawsuit brought by 22 Democratic state attorneys general.

The administration rescinded the Office of Management and Budget’s Jan. 27 freeze memo two days later, but confusion ensued about what that rescission actually meant, and some organizations say they still haven’t received their money.

Idaho Gov. Brad Little said in late January that he was “all in on President Trump’s efforts to rein in federal spending,” and U.S. Sen. Jim Risch said “the temporary pause on federal grants is an opportunity” to take “a good look at where our federal dollars are going.”