Fresno Mayor Jerry Dyer says losing federal housing and transportation dollars would devastate the city. Fresno joined a multistate lawsuit against the Trump administration on Wednesday, Aug. 21, 2025. (GV Wire Composite)

- Fresno joined a coalition of cities and counties suing the Trump administration over threatened loss of federal grants.
- HUD ordered Fresno to strip “equity,” “environmental justice,” and gender references from its housing and transportation plans.
- Fresno leaders warn that losing nearly $250 million in funding could harm housing, transportation, and airport projects.
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Fresno wants its federal funds without Trump administration interference. Along with several other jurisdictions, the city filed a federal lawsuit in San Francisco on Wednesday seeking to keep grant money unfettered.
In a news release, the city said it receives nearly $12 million in housing grants, and nearly $250 million in transportation grants.
“Our city depends on these federal grants in order to meet our housing demand, provide reliable transportation, and improve our roads,” Mayor Jerry Dyer said. “When Washington suddenly rewrites the rules, it’s our families, seniors, and small businesses who suffer most – and the impact is felt throughout our nation.”
The city is asking a federal judge for an injunction, and temporary restraining order to prevent the federal government from rescinding dollars earmarked for Fresno.
Lawsuit Details
Joining the lawsuit — filed in the United States District Court for the Northern District of California — are the cities of Eureka, and South Lake Tahoe, California; Sacramento County; St. Paul, Minnesota; Monroe County, New York; and New York’s Monroe County Airport Authority).
“Plaintiffs bring this action reluctantly, only after the current Administration’s actions have left them no other means of protecting the federal funding essential to their communities,” the 96-page lawsuit says.
The main legal argument is that the Constitution allows Congress, not the president, to appropriate federal funds.
The defendants include several federal agencies and their directors — Housing and Urban Development; Department of Transportation; Federal Transit Administration; Federal Highway Administration; Federal Aviation Administration; Department of Health and Human Services; and the Environmental Protection Agency.
HUD, DOT, and HHS did not immediately respond for a comment.
The lawsuit states the federal government “imposed vague and unauthorized conditions on federal grants to coerce compliance with executive policy preferences,” violating the Fifth and 10th amendments.
The city, along with five of the other plaintiffs, hired the San Francisco-based Renne Public Law Group to file the lawsuit.
The case is assigned to Judge Richard Seeborg, a 2009 Obama appointee. Not date has been set for the first hearing.
Feds Question Fresno Over Woke Words
HUD sent the city an email on Aug. 18, questioning the certification of its spending plans for the Community Development Block Grant. A request with the city to review the email is pending.
The lawsuit detailed HUD’s objections, specifically with a program known as the DRIVE Plan, which HUD said “has goals to improve housing affordability and stability, reduce racial and economic isolation and support environmental justice and sustainability.”
According to the lawsuit, HUD directed Fresno to “remove all references to the words ‘equity,’ ‘environmental justice,’ and all transgender references, and provide assurances that ‘[t]he City of Fresno shall not use grant funds to promote ‘gender ideology,'” in violation of Trump Executive Order 14168.
HUD also had issues with a plan for emergency shelters “for all genders and their dependent children who are fleeing domestic violence.”
“This language includes provisions that appear to be inconsistent with the implementation of federal programs pursuant to the referenced executive orders, and directed Fresno to “[r]emove or replace all ‘equity’ references throughout the document,” the lawsuit said.
HUD gave the city until 9 a.m. Thursday to remove those references. Failure to comply could lead to disapproval of Fresno’s plan.
The federal government expects compliance with other grants, including an FAA grant. Fresno could lose $13 million for airport improvements, if the city does not comply by September.
A $750,000 EPA grant depends on following the executive order by Aug. 26.
“Working families should not become collateral damage in a political fight between Washington and Sacramento. With federal dollars for high-speed rail funding already eliminated, Fresno’s airport is more vital than ever as the Valley’s transportation hub — and without federal support, both our airport and the local economy it sustains would be at critical risk,” City Council President Mike Karbassi said.
The lawsuit also references several other executive orders on DEI, immigration, and abortion. Fresno’s attorneys call such conditions unlawful.
Last month, Rep. Jim Costa, D-Fresno, signed a letter to members of several committee chairs asking to protect HUD grants.
Secret Approval of Lawsuit
The City Attorney’s Office said the city council approved filing the lawsuit in a closed session vote on July 17 by a 5-0 vote — Annalisa Perea and Miguel Arias were absent. However, the minutes for the meeting show no announcement of the vote. Video from the meeting shows adjournment without a closed-session result.
The city kept this information a secret for a month, continuing a trend of City Hall and other local government bodies such as Fresno Unified School District making decisions without public disclosure.
A source with knowledge of the closed-session vote said the city agreed to pay the attorneys up to $100,000. The city believes it did not have to disclose the lawsuit until it was filed.
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