Fresno airport expansion plan, other grant money at risk, federal lawsuit says
Fresno joined several U.S. cities and counties Wednesday in a lawsuit over the Trump Administration’s threats to pull federal grant dollars from municipalities that don’t remove language around gender and diversity from city plans.
The lawsuit and temporary restraining order filed in the state’s Northern District Court says the city of Fresno received an email on Monday from the U.S. Department of Housing and Urban Development warning the city about the language in its local Community Development Block Grant plan, according to the complaint.
HUD directed the city to remove all references to “equity,” “environmental justice” and all transgender references, the complaint says. The city cannot use grant money to “promote gender ideology” as defined in an executive order from President Donald Trump in January.
HUD gave the city a deadline of Thursday to remove the language or else the grant plan would not be approved.
“We are asking the courts to restore fairness, predictability, and the rule of law to the federal grants system,” City Attorney Andrew Janz said in a statement. “This lawsuit is not about partisan politics — it is about protecting essential federal funding that Congress previously authorized and intended for local communities.”
The city received a similar warning in April from U.S. Secretary of Transportation Sean Duffy, whose letter said the city faced funding losses over DEI language and for not working with U.S. Immigration and Customs, known as ICE.
Grant funding is important in the fifth largest city in the state, according to Mayor Jerry Dyer.
“Our city depends on these federal grants in order to meet our housing demand, provide reliable transportation and improve our roads,” Dyer said in a statement. “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 plaintiffs named in the lawsuit include the cities of Eureka and South Lake Tahoe as well as Sacramento County and others. Along with HUD, it names several other federal agencies and their chiefs.
The complaint calls their demands “vague and unauthorized conditions,” and notes the funding in question had already been awarded by Congress.
Fresno was awarded $11.7 million from HUD, more than $100 million by the U.S. Department of Transportation and $2.2 million from the U.S. Environmental Protection Agency, according to the complaint.
Fresno-Yosemite International Airport is also at risk of losing about $50 million already awarded for improvements as well as another $100 million in anticipated money, the lawsuit says.
The complaint notes the “power of the purse” is outlined in the Constitution as belonging to Congress, which did not establish any of the conditions in question.
Councilmember Mike Karbassi said local taxpayers have paid into the system and deserve the money Congress has already approved.
“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,” he said in a statement. “Our responsibility is to make sure local services are never jeopardized by politics, and this lawsuit is one step in keeping that promise.”
