A coalition of 60 local governments filed suit against the Department of Housing and Urban Development, the Department of Transportation, the Federal Transit Administration, and the Department of Health and Human Services to challenge the agencies’ practice of conditioning Congressionally-appropriated grants—including funding for services to unhoused people and critical transit programs—on compliance with executive orders concerning immigration, transgender rights, and diversity, equity, and inclusion. They argue that the conditions violate the separation of powers, the Spending Clause, the Tenth Amendment, the Fifth Amendment, and the Administrative Procedure Act. They also argue that the grant conditions exceed statutory and regulatory authorities. Plaintiffs seek declaratory and injunctive relief.
