On November 25, 2025, Representative Eric Swalwell of California initiated a lawsuit against Bill Pulte, the director of the Federal Housing Finance Agency (FHFA). The lawsuit alleges that Pulte breached federal privacy laws by disclosing documents intended to accuse prominent Democrats of mortgage fraud. Swalwell has denied these allegations, which Pulte previously referred to the Justice Department, claiming mortgage fraud against Swalwell, New York Attorney General Letitia James, Senator Adam B. Schiff, and Federal Reserve Governor Lisa Cook. All accused individuals have denied any wrongdoing and assert that Pulte is misusing his access to federal mortgage documents to target political opponents in alignment with President Trump's agenda. Swalwell's lawsuit, filed in Federal District Court in Washington, describes the fraud allegations as “patently false” and seeks a ruling to declare Pulte’s actions illegal and compel him to retract the criminal referral.

In a separate legal action, a coalition of twenty U.S. states, primarily led by Democratic officials, along with Washington, D.C., has filed a lawsuit in federal court in Rhode Island against the Trump administration. This lawsuit aims to block new restrictions imposed by the U.S. Department of Housing and Urban Development (HUD) on the Continuum of Care program, which allocates over $3 billion in grants for permanent housing and services for homeless individuals. The states argue that the proposed changes violate federal law and disproportionately affect LGBTQ individuals and other marginalized communities. The lawsuit specifically challenges new conditions that would limit funding for permanent housing and prohibit grants to organizations supporting transgender communities.

New York Attorney General Letitia James highlighted the significance of the Continuum of Care program, which has been instrumental in providing housing and resources to at-risk populations since its establishment in 1987. The program follows a 'housing first' model, prioritizing permanent housing without preconditions. However, the Trump administration has criticized this approach, proposing to shift the focus of the grant program towards transitional housing initiatives that include work requirements and other stipulations. Additionally, HUD has restricted the use of funds for activities promoting diversity, equity, and inclusion, as well as for elective abortions or initiatives conflicting with the administration's immigration policies. The changes could potentially jeopardize housing for over 170,000 individuals, as the lawsuit contends that the administration lacks the authority to impose such conditions on funds designated by Congress based on need.