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Lawsuit Challenges Unlawful HHS Grant Restrictions on Nonprofits and Vulnerable Communities

A coalition of organizations filed a federal lawsuit to challenge new grant restrictions from the U.S. Department of Health and Human Services. The policy conditions force hundreds of nonprofits, domestic violence and sexual assault coalitions, and a county…

Lawsuit Challenges Unlawful HHS Grant Restrictions on Nonprofits and Vulnerable Communities

A coalition of organizations filed a federal lawsuit to challenge new grant restrictions from the U.S. Department of Health and Human Services. The policy conditions force hundreds of nonprofits, domestic violence and sexual assault coalitions, and a county safety net hospital to choose between accepting unlawful conditions or forgoing grant funding that is needed to offer critical services, support, and healthcare for communities.

Lawsuit Challenging HHS Grant Conditions Filed in Federal Court

Kennedy, targets administrative restrictions that prevent plaintiffs from supporting transgender individuals, implementing diversity and inclusion practices that address racial disparities, and using Housing First strategies. These directives stem from a series of executive orders from the Trump-Vance administration. As the largest grantmaking federal agency, HHS distributes billions of dollars annually, including more than $81 billion in discretionary awards alone in 2026.

Democracy Forward’s legal team, alongside attorneys from the Lawyers’ Committee for Rhode Island and cooperating counsel for the ACLU Foundation of Rhode Island, represents the plaintiffs. The coalition argues that the conditions are impossibly vague, inconsistent with federal and state law, and expose organizations to arbitrary enforcement.

Nonprofit Impact on Vulnerable Communities Across the Country

The restrictions threaten critical social services, health programs, and housing support for children, youth, families, and survivors of domestic and sexual violence. Lucy Rios, Executive Director of the Rhode Island Coalition Against Domestic Violence, stated that the conditions would disproportionately harm Black and Brown communities, immigrants, undocumented individuals, and LGBTQIA+ people.

“Survivors deserve access to safety and support without unnecessary barriers, yet these harmful restrictions imposed by the Department of Health and Human Services threaten that fundamental principle,” Rios said. For domestic violence survivors, losing these resources means fewer pathways to safe housing and essential services.

Tanja Kubas-Meyer, Executive Director of the Rhode Island Coalition for Children and Families, emphasized that federal funding should support community needs rather than enforce ideological alignment. Benedict Lessing, Jr., President/CEO of Community Care Alliance, called the language discriminatory and contrary to the mission of HHS over several decades.

Legal Precedents and Prior Federal Court Decisions

The administration previously attempted to impose similar conditions on federal grants earlier this year. A federal court blocked those restrictions in a lawsuit brought by a nationwide coalition of domestic violence, sexual assault, housing, youth, and homelessness organizations.

Amy Romero, Chief Legal Counsel of the Lawyers’ Committee for Rhode Island, noted that nonprofit groups are once again forced to challenge unlawful funding strings. Steven Brown, executive director of the ACLU of RI, added that applicants face an untenable choice between accepting terms that contradict their organizational missions or forfeiting the grants entirely.

Frequently Asked Questions About RICCF v. Kennedy

Which organizations filed the lawsuit against HHS?

The plaintiffs include the Rhode Island Coalition Against Domestic Violence, the Rhode Island Coalition for Children and Families, and Community Care Alliance, represented by Democracy Forward, the Lawyers’ Committee for Rhode Island, and the ACLU Foundation of Rhode Island.

What specific policies do the new HHS grant restrictions target?

The rules restrict grantees from supporting transgender individuals, enacting diversity and inclusion practices addressing racial disparities, and using Housing First strategies.

How much federal funding is managed through HHS discretionary awards?

HHS awards more than $81 billion in discretionary grants alone in 2026, making it the largest grantmaking federal agency.

About the author: Alex Thompson — Chief Editor

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