A federal judge in Oakland has blocked the Biden administration’s motion to dismiss a lawsuit filed by Los Angeles, San Francisco, San Diego, Baltimore, and Salem, Colorado. The suit challenges limits on diversity, equity, and inclusion (DEI) policies in Housing and Urban Development (HUD)-funded housing programs. U.S. District Judge Jon Tigar ruled that the case may proceed to trial, rejecting claims that it duplicates another pending lawsuit over similar DEI restrictions tied to different HUD grants.
The lawsuit stems from an executive order issued under the Trump administration, which threatened to withhold federal funding from housing agencies enforcing DEI initiatives. The Biden administration had argued the case was redundant with another lawsuit—also challenging DEI restrictions but involving separate grants and plaintiffs. Tigar dismissed that argument, stating the two lawsuits involve distinct legal claims and funding programs. The judge also denied a request to transfer the case to Washington state, where a related lawsuit is ongoing, citing differences in the grants and entities involved.
This ruling follows earlier legal action against the DEI restrictions. In May 2025, a coalition of cities, including Portland, filed a separate lawsuit to block limits on grants for homelessness programs, community renewal, and AIDS housing. A federal judge granted a preliminary injunction halting those restrictions, and that decision remains in place.
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The Oakland case focuses on four specific HUD programs: Operating Subsidy, Capital Fund, Family Self-Sufficiency, and Multifamily Housing Service Coordinator. The cities sued in October, and Tigar issued a temporary restraining order three days later, calling the DEI conditions “vague” and lacking clear guidance. Tigar rejected that position, emphasizing that the lawsuits involve separate legal interests and distinct funding programs.
The DEI restrictions have triggered multiple legal challenges across the country, with housing authorities and cities suing over similar funding conditions. The Trump-era policy, now under judicial review, has become a focal point in debates over federal control of local housing initiatives. Comparisons have been drawn to past efforts to limit DEI in federal contracts, such as a 2020 Trump administration executive order targeting workforce policies in federal agencies. However, the current dispute may determine whether HUD can enforce such conditions without clearer legal definitions.
