A federal judge has temporarily blocked the Trump administration from canceling $56 million in congressionally approved housing counseling grants while a legal challenge proceeds.
The National Urban League and 10 nonprofit organizations sued the Department of Housing and Urban Development over the funding cuts.
The plaintiffs argue that the cancellations violate constitutional and First Amendment protections.
On Wednesday, District Judge Jia Cobb suspended a September 30 deadline that would have returned the funds to the Treasury, preserving the grants while the case continues.
The Government Accountability Office has said the administration’s approach is unlawful, although court rulings on similar funding disputes remain unresolved. Both sides are expected to submit responses by October 19.
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US housing agency internal watchdog warns budget cut will stymie its work https://t.co/MYfpvfZOmc https://t.co/MYfpvfZOmc
— Reuters (@Reuters) October 1, 2026
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