HUD has opened a civil rights investigation into Minneapolis, alleging the city’s housing plans and equity directives unlawfully prioritize housing by race and national origin. The probe cites language in Minneapolis 2040 and the city’s Strategic and Racial Equity Action Plan and looks for possible violations of the Fair Housing Act and Title VI. HUD linked the inquiry to broader COVID-era fraud probes in Minnesota and said it will also review federal housing funds distributed in the city.
HUD Opens Civil Rights Probe Into Minneapolis Over Race- and Nationality-Based Housing Priorities
"Minnesota has been ground zero for fraud and corruption because it plays a cynical game of racial and ethnic politics," HUD Secretary Scott Turner told Fox News Digital.(Getty Images)
The U.S. Department of Housing and Urban Development (HUD) has launched a civil rights investigation into the City of Minneapolis, alleging the city’s housing policies and internal equity directives unlawfully allocate resources based on race and national origin. HUD notified Mayor Jacob Frey on Thursday that the probe will examine whether Minneapolis violated the federal Fair Housing Act and Title VI of the Civil Rights Act.
What HUD Says It Found
Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor sent the formal notice, citing language in Minneapolis' comprehensive plan, Minneapolis 2040, and the city's Strategic and Racial Equity Action Plan. HUD's letter says the city has "committed to making available and allocating housing resources based on race and nationality," which could amount to a federal civil rights violation if substantiated.
Minnesota has been rocked by an alleged fraud scandal stretching back to the COVID-19 pandemic that prosecutors speculate could total billions of dollars.
"That is not going to fly," Trainor wrote in the letter to Mayor Frey, challenging provisions that HUD says prioritize housing by racial and national groups.
Plans Under Scrutiny
Minneapolis 2040, adopted in 2020, outlines the city's long-term vision and includes a proposal to establish "cultural districts" described as contiguous areas with cultural or linguistic identities rooted in communities "significantly populated by people of color, Indigenous people, and/or immigrants." The plan also states it "strives to eliminate disparities among people of color and indigenous peoples compared with white people."
HUD also cited Minneapolis’ Strategic and Racial Equity Action guide, which directs city departments to align racial equity goals with departmental plans, programs and budgets. The letter quotes a specific example in which the Community Planning and Economic Development department would prioritize "rental housing for Black, Indigenous, People Of Color and Immigrant communities" through its rental licensing authority.
Immigration and Customs Enforcement officers question a man about his status on Lake Street near Karmel Mall in Minnesota Dec. 10, 2025.
Context: Fraud Investigations and Federal Funds
HUD tied the probe to broader COVID-era fraud allegations in Minnesota, where federal prosecutors have charged nearly 100 people in schemes tied to state-administered social services programs that investigators say may involve more than $9 billion. HUD officials said that evidence uncovered in those investigations raised questions about whether racial politics influenced housing policy decisions.
HUD officials also said they are reviewing federal housing dollars distributed in the city. According to HUD statements, Minneapolis public housing authorities receive roughly $108 million in HUD funds, with an additional roughly $46 million in public housing assistance in the area. HUD has reported discovering up to $84 million in potentially ineligible assistance, including about $496,000 paid to 509 deceased tenants.
A firework explodes near fencing outside the Bishop Henry Whipple Federal Building during protests Jan. 12, 2026, in Minneapolis.
Responses and Next Steps
HUD Secretary Scott Turner said the department will "continue to deliver on President Trump's promise to support affordable housing for American families, in part by dismantling illegal racial and ethnic preferences that deny Americans their right to equal protection under the law," and pledged a thorough investigation of any potential discrimination involving Minneapolis.
Fox News Digital contacted Mayor Frey's office and the City of Minneapolis communications team but had not received an immediate response. The probe unfolds amid heightened public attention and protests related to the wider fraud investigations, and as state political leaders have responded to the scandal's fallout.
What Happens Next: HUD's review will determine whether city policies or programs violated federal civil rights laws. If violations are found, HUD can require changes to city policies, conditions on federal funding, or other remedies to ensure compliance with the Fair Housing Act and Title VI.
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