More than 20 advocacy groups are taking the Trump administration to court, accusing it of using federal grant money as a weapon to attack LGBTQ+ rights, abortion access, and inclusive programming. The lawsuit, filed Monday in federal court in Rhode Island, comes after the Departments of Housing and Urban Development (HUD) and Health and Human Services (HHS) imposed new funding restrictions that plaintiffs say are driven by ideology—not service.
At stake are critical funds for domestic violence and sexual assault services, homelessness programs, and maternal health initiatives. The new conditions, tied to executive orders issued by President Trump, would deny funding to groups that support so-called “gender ideology”—defined as recognizing that gender can differ from birth sex—and that offer abortion referrals or endorse diversity, equity, and inclusion (DEI) policies.
“These organizations are being forced into a lose-lose scenario,” the lawsuit says. “Either they comply with these outrageous restrictions and betray the communities they serve—or they lose the funding that keeps their doors open.”
LGBTQ+ Communities on the Line
The impact on the LGBTQ+ community is especially chilling. Services that affirm gender identity and offer safety for queer youth, trans individuals, and homeless LGBTQ+ people are now in danger of vanishing overnight. The administration’s move, plaintiffs argue, is designed to dismantle safe spaces under the guise of legality. Programs that offer trans-inclusive housing or use gender-affirming language may now be labeled noncompliant.
Skye Perryman, president of Democracy Forward, put it bluntly: “Organizations serving survivors of domestic violence and sexual assault, LGBTQ+ youth, and people experiencing homelessness should not be forced to erase the identities of those they serve just to keep their lights on.”
The new rules, announced in part by HUD Secretary Scott Turner on social media, align with early Trump-era directives—reaffirming that only “two unchangeable sexes” exist and that federal funds must not be used to promote “elective abortion” or DEI initiatives. Critics say this marks an unprecedented move to push a cultural agenda through administrative policy.
Legal Showdown Brewing
The plaintiffs allege the administration is bypassing Congress, crafting policy that conflicts with existing federal rules. For instance, HUD’s own “equal access” rule mandates that facilities funded by its programs must serve people according to their gender identity and without invasive questioning. Now, groups complying with this rule are being told to stop—or risk being labeled fraudulent under the False Claims Act.
The lawsuit claims the administration is actively endangering communities by pitting compliance with civil rights protections against financial survival. Some plaintiffs stand to lose hundreds of thousands of dollars in grant money—a death knell for programs protecting the most vulnerable.
Make no mistake: this is more than bureaucratic red tape. It’s a political strategy with real consequences for real people—especially queer people.
A Dangerous Precedent for Queer Safety
By tying life-saving funding to anti-LGBTQ+, anti-abortion, and anti-DEI ideology, the administration is effectively rewriting the rules of inclusion in federally funded programs. The chilling message to queer Americans is clear: your identity is incompatible with government support.
For LGBTQ+ shelters, rape crisis centers, and programs supporting trans and nonbinary people, this fight is existential. It’s not just about funding—it’s about whether queer identities can be acknowledged, respected, and protected in the eyes of the state.
And in 2025, apparently, that’s still up for debate.