Paxton Sues Texas Housing Agency Over Religious Discrimination

Nov 29, 2025, 3:20 AM
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Texas Attorney General Ken Paxton has initiated a lawsuit against the Texas Department of Housing and Community Affairs (TDHCA), alleging that the agency's rules unjustly discriminate against religious organizations. The lawsuit seeks to challenge regulations that prohibit organizations receiving state and federal funds for homelessness programs from engaging in any religious activities within those programs.
According to the lawsuit, the TDHCA's stipulations require that organizations alter or abandon core elements of their faith to qualify for funding. Paxton argues that these requirements are unconstitutional, as they infringe upon the First Amendment rights of religious entities. He stated, "State agencies have no authority to force Christians and other religious organizations to censor their beliefs just to serve their communities," emphasizing the need to uphold constitutionally protected religious liberty in Texas and across the nation.
The TDHCA oversees several critical programs aimed at combating homelessness and providing affordable housing, including the Emergency Solutions Grants Program, the Homeless Housing and Services Program, and the Bootstrap Loan Program. Under the current regulations, funds allocated for these programs cannot be used for "sectarian or explicitly religious activities such as worship, religious instruction, or proselytization." This prohibition, Paxton contends, effectively deters funding from reaching churches and other religious organizations that wish to participate in these initiatives.
While the lawsuit raises significant concerns about religious discrimination, it does not provide specific examples of religious organizations that have been denied funding or detail any individuals harmed by these rules. This lack of concrete instances may affect the lawsuit's impact, as it seeks to establish a broader principle of religious liberty rather than address particular grievances.
This legal action marks Paxton's second lawsuit targeting a state agency in recent weeks for similar reasons. Just days prior, he filed a lawsuit against the Texas Higher Education Coordinating Board, challenging provisions in work-study programs that he claims discriminate against religious students. Paxton's commitment to defending religious liberty is evident in his statements, where he has vowed to eliminate any provisions that undermine the rights of religious individuals and organizations in Texas.
The TDHCA has not publicly responded to the lawsuit as of yet, leaving questions about the agency's stance on the allegations made by Paxton.
As religious liberty continues to be a contentious issue in the United States, Paxton's lawsuit may set a precedent for how state agencies interact with religious organizations seeking public funding. The outcome of this case could have significant implications for the future of funding for religious entities involved in social services across Texas.
In summary, Paxton's legal challenge against the TDHCA underscores ongoing tensions between government regulations and religious freedoms, reflecting broader national debates about the role of faith in public life and the extent of government oversight in religious matters.

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