Fair Housing Initiatives Program (FHIP)

(Fair Housing)

Department of Housing and Urban Development

Proposed Cut

$60M

% Reduction

60.0%

Action Type

reduction

Who Is Served

Fair housing enforcement organizations; discrimination complainants

Summary

The Fair Housing Initiatives Program (FHIP) gives grants to nonprofit fair housing organizations across the country so they can test for housing discrimination, investigate complaints, and educate the public about fair housing rights. The FY2027 budget proposes cutting FHIP funding by $60 million, a 60% reduction, with the administration saying it wants to shift fair housing enforcement toward HUD's own office rather than outside private testing and enforcement grants.

Who Is Affected

The cut hits local nonprofit fair housing groups nationwide that rely on FHIP grants to run discrimination 'testing' investigations and help people file complaints, especially in the roughly 12 states that have no state or local fair housing agency funded through HUD's parallel Fair Housing Assistance Program. People who file housing discrimination complaints — people with disabilities make up more than half of such claims — as well as families with children, veterans, people of color, and others protected under the Fair Housing Act would lose a key source of independent investigation and legal support.

What this cut would actually mean

With less money for private fair housing groups, fewer discrimination complaints will get investigated or tested, meaning landlords, lenders, or property managers who illegally turn away renters or buyers based on race, disability, family status, or national origin are less likely to be caught. This comes on top of a reported 41.7% staffing cut already made at HUD's own Office of Fair Housing and Equal Opportunity, so the local nonprofits that received FHIP funding had been filling part of that enforcement gap; losing this funding leaves many discrimination victims with longer waits, less legal help, and fewer cases pursued.

Sources

Department of Housing and Urban Development (HUD) FY2027 Budget Request: In Brief | Congress.gov — Congressional Research Service report describing the proposed $60 million, 70% reduction to the combined Fair Housing Activities account (which funds FHIP and FHAP) relative to FY2026.
The Trump Administration's FY27 Budget Places Fair and Affordable Housing Out of Reach for Everyday People - NFHA — National Fair Housing Alliance analysis of the administration's FY2027 HUD budget proposal, including cuts to FHIP, fair housing training, and staffing reductions at HUD's Office of Fair Housing and Equal Opportunity.
House Appropriations Committee Holds Markup and Party-Line Vote to Advance FY27 HUD Spending Bill | National Low Income Housing Coalition — NLIHC coverage of the FY27 HUD spending bill markup, noting that people with disabilities account for the majority of housing discrimination claims and would be most affected by fair housing funding cuts.
House Advances FY27 Housing and Community Development Spending Proposals | Enterprise Community Partners — Enterprise Community Partners summary of House FY2027 HUD funding proposals, including details on Fair Housing Activities funding levels compared to FY2026.