Trump administration prepares to drop seven major housing discrimination cases

Federal housing officials spent years investigating cities for putting industrial plants and unwanted facilities in poor, nonwhite neighborhoods. Now, under Trump, the agency plans to drop the cases.

By Jesse Coburn, ProPublica

Photo: Nick Humphries via Flickr.

The U.S. Department of Housing and Urban Development is preparing to shut down seven major investigations and cases concerning alleged housing discrimination and segregation, including some where the agency already found civil rights violations, according to HUD records obtained by ProPublica.

The high-profile cases involve allegations that state and local governments across the South and Midwest illegally discriminated against people of color by placing industrial plants or low-income housing in their neighborhoods, and by steering similar facilities away from white neighborhoods, among other allegations. HUD has been pursuing these cases — which range from instances where the agency has issued a formal charge of discrimination to newer investigations — for as many as seven years. In three of them, HUD officials had determined that the defendants had violated the Fair Housing Act or related civil rights laws. A HUD staffer familiar with the other four investigations believes civil rights violations occurred in each, the official told ProPublica. Under President Donald Trump, the agency now plans to abruptly end all of them, regardless of prior findings of wrongdoing.

Four HUD officials said they could recall no precedent for the plan, which they said signals an acceleration of the administration’s retreat from fair housing enforcement. “No administration previously has so aggressively rolled back the basic protections that help people who are being harmed in their community,” one of the officials said. “The civil rights protections that HUD enforces are intended to protect the most vulnerable people in society.”

In the short term, closing the cases would allow the local governments in question to continue allegedly mistreating minority communities, said the officials, who spoke on the condition of anonymity out of fear of retaliation. In the long term, they said, it could embolden local politicians and developers elsewhere to take actions that entrench segregation, without fear of punishment from the federal government.

HUD spokesperson Kasey Lovett declined to answer questions, saying “HUD does not comment on active Fair Housing matters or individual personnel.”

Three of the cases involve accusations that local governments clustered polluting industrial facilities in minority neighborhoods.

One concerned a protracted dispute over a scrap metal shredding plant in Chicago. The facility had operated for years in the largely white neighborhood of Lincoln Park. But residents complained ceaselessly of the fumes, debris, noise and, occasionally, smoke emanating from the plant. So the city allegedly pressured the recycling company to close the old facility and open a new one in a minority neighborhood in southeast Chicago. In 2022, HUD found that “relocating the Facility to the Southeast Site will bring environmental benefits to a neighborhood that is 80% White and environmental harms to a neighborhood that is 83% Black and Hispanic.” Chicago’s mayor called allegations of discrimination “preposterous,” then settled the case and agreed to reforms in 2023. (The new plant has not opened; its owner has sued the city.)

Photo: WNEM

In another case, a predominantly white Michigan township allowed an asphalt plant to open on its outskirts, away from its population centers but near subsidized housing complexes in the neighboring poor, mostly Black city of Flint. The township did not respond to a ProPublica inquiry about the case.

Still another case involved a plan pushed by the city of Corpus Christi, Texas, to build a water desalination plant in a historically Black neighborhood already fringed by oil refineries and other industrial facilities. (Rates of cancer and birth defects in the area are disproportionately high, and average life expectancy is 15 years lower than elsewhere in the city, researchers found.) The city denied the allegations. Construction of the plant is expected to conclude in 2028.

Three other cases involve allegations of discrimination in municipal land use decisions. In Memphis, Tennessee, the city and its utility allegedly coerced residents of a poor Black neighborhood to sell their homes so that it could build a new facility there. In Cincinnati, the city has allegedly concentrated low-income housing in poor Black neighborhoods and kept it out of white neighborhoods. And in Chicago, the city has given local politicians veto power over development proposals in their districts, resulting in little new affordable housing in white neighborhoods. (Memphis, its utility and Chicago have disputed the allegations; Cincinnati declined to comment on them.)

The last case involved a Texas state agency allegedly diverting $1 billion in disaster mitigation money away from Houston and other communities of color hit hard by Hurricane Harvey in 2017 and toward more rural, white communities less damaged by the storm. The agency has disputed the allegations.

All of the investigations and cases are now slated to be closed. HUD is also planning to stop enforcing the settlement it reached in the Chicago recycling case, the records show.

The move to drop the cases is being directed by Brian Hawkins, a recent Trump administration hire at HUD who serves as a senior adviser in the Fair Housing Office, two agency officials said. Hawkins has no law degree or prior experience in housing, according to his LinkedIn profile. But this month, he circulated a list within HUD of the seven cases that indicated the agency’s plans for them. In the cases that involve Cincinnati, Corpus Christi, Flint and Houston, the agency would “find no cause on [the] merits,” the list reads. In the two Chicago cases and the one involving Memphis, HUD would rescind letters documenting the agency’s prior findings. Hawkins did not respond to a request for comment.

The list does not offer a legal justification for dropping the cases. But Hawkins also circulated a memo that indicates the reasoning behind dropping one — the Chicago recycling case. The memo cites an executive order issued by Trump in April eliminating federal enforcement of “disparate-impact liability,” the doctrine that seemingly neutral policies or practices could have a discriminatory effect. Hawkins’ memo stated that “the Department will not interpret environmental impacts as violations of fair housing law absent a showing of intentional discrimination.” Four HUD officials said such a position would be a stark departure from prior department policy and relevant case law.

The reversal on the Chicago recycling case also follows behind-the-scenes pressure on HUD from Sen. Jim Banks. In June, Banks, a Republican from Indiana, wrote a letter to HUD Secretary Scott Turner and U.S. Environmental Protection Agency Administrator Lee Zeldin in which he criticized the administration of President Joe Biden’s handling of the case as “brazen overreach.” Noting that the Chicago plant would supply metal to Indiana steel mills, Banks asked the Trump appointees to “take any actions you deem necessary to remedy the situation.” Banks did not respond to a request for comment.

That case and others among the seven had also received scrutiny from other federal and state agencies, including the EPA and the U.S. Department of Justice. The EPA declined to say whether it was still pursuing any of the cases. The DOJ did not respond to the same inquiry.

The case closures at HUD would be the latest stage in a broad rollback of fair housing enforcement under the Trump administration, which ProPublica reported on previously. That rollback has continued in other ways as well. The agency recently initiated a plan to transfer more than half of its fair housing attorneys in the office of general counsel into unrelated roles, compounding prior staff losses since the beginning of the year, four HUD officials told ProPublica.

The officials fear long-lasting ramifications from the changes. “Fair housing laws shape our cities, shape where housing gets built, where pollution occurs, where disaster money goes,” one official said. “Without them, we have a different country.”