State agency that reviews discrimination cases says Trump-era rules likely disqualify it from federal funds

The state agency that investigates discrimination complaints in Massachusetts says it doesn’t expect it can renew a contract for over $1 million in federal funds, in part due to Trump administration rule changes.

The head of the independent Massachusetts Commission Against Discrimination said federal officials last year sent a memo to warn the agency and those in other states that review housing discrimination cases about stricter funding requirements.

The U.S. Department of Housing and Urban Development memo told the agencies that if their states offer broader anti-discrimination protections than the U.S. government, they'd likely be ineligible for federal funds.

The federal guidance came after HUD last year halted enforcement of a 2016 rule that guaranteed access to housing regardless of one’s gender identity. It did so as President Trump also ordered an end to similar anti-discrimination rules put in place by former President Joe Biden.

In its memo, HUD wrote the federal Fair Housing Act doesn’t include protections for: “sexual orientation, gender identity, and gender expression; ‘source of income’; criminal records; weight and height; or limited English proficiency.” Work done to investigate complaints related to those issues would not be eligible for HUD reimbursements, the memo said.

HUD further said it'd review its contracts and possibly revoke ones with agencies governed by local laws that offer protections not explicitly stated in federal law.

That’s the case for Massachusetts.

“The commonwealth has been an incredible leader in anti-discrimination law,” Michael Memmolo, the agency’s executive director, said. He added past administrations “appreciated” state agencies that offered “more robust protections” against prejudice than the federal government.

“We are now being told that will not be the case moving forward,” he said.

Unlike the federal government, Massachusetts also bans discrimination against people on public assistance.

Last fiscal year, MCAD received nearly 300 new complaints of alleged discrimination on the basis of sexual orientation, gender identity and public assistance, according to its annual report released last month.

“The Trump Administration is committed to vigorously enforcing the Fair Housing Act as enacted by Congress," Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor said in an emailed statement Thursday. "This includes restoring fair housing enforcement to its core statutory authority and aligning our partner agencies with the law’s requirements and the President’s policies on DEI, the biological reality of sex, and English as the official language of the United States.”

MCAD officials said HUD has not offered a new contract, but that they would be open to reviewing one. The agency's last contract with HUD expired in September, and Memmolo said he’s hopeful the state will move to cover all or some of the money that MCAD expects to go without beginning as early as July.

MCAD gets roughly 20% of its total budget — or just over $2 million — from HUD and the U.S. Equal Employment Opportunity Commission, the state commission's annual report shows. Those dollars fund eight staffers in the agency’s Housing Investigations Unit.

The agency’s contract with the U.S. Equal Employment Opportunity Commission also expired at the end of September. Memmolo said the commission hasn’t formally updated its guidance on funding eligibility, but he expects them to match HUD’s changes.

The federal changes came down as the state agency grew. MCAD hired more investigators and posted new job openings last year. Simultaneously, it saw its backlog of non-housing related complaints balloon by more than 25% compared to the previous fiscal year. They include complaints related to employment, public accommodation and education.

Memmolo said the agency is trying to modernize its systems and take on fewer new cases to address the backlog.

Correction: An earlier version of this story said HUD officials did not offer comment after an email exchange was missed. The story has been updated with the department's statement. We regret the error.