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Housing and Gender Identity: What a New HUD Department Rule Might Mean for Federally Funded Shelters 

Housing and Gender Identity
Editors: Francis Rogai

Key Takeaways

  • A new rule proposed by the Department of Housing and Urban Development (HUD) could remove existing anti-discrimination protections in housing programs and shelters. It would also allow service providers to require proof of the sex of individuals seeking shelter. 
  • The agency is seeking to remove all references to gender identity and sexual orientation in HUD regulations, replacing them with the term “sex.” This move is intended to place its rules in line with Trump administration guidelines.
  • Proponents argue that this move could help to protect religious liberty and sex-specific shelters, while opponents argue that the new rule would increase anti-LGBTQ+ discrimination.

Background

The Department of Housing and Urban Development (HUD) is an executive branch agency that administers programs related to “housing policy and community development.” This includes efforts to enforce fair housing laws and provide affordable housing assistance. In 2012, HUD enacted the “Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity” rule, which opened agency housing programs to eligible individuals and families regardless of gender, sexuality, or marriage status. HUD followed this policy with the 2016 “Equal Access in Accordance With an Individual’s Gender Identity in Community Planning and Development Programs” rule to give clearer protections for transgender and gender-nonconforming individuals seeking shelter. 

Now, HUD seeks to revise its definitions of gender identity and sexual orientation. On April 28, 2026, the agency published its proposal for “Equal Access to Housing in HUD Programs Revisions”. If enacted, this new rule would either remove references to gender identity from HUD regulations, or replace gender-related terms with “sex” as determined by recent guidelines from the Trump administration. The rule would also let program providers ask individuals seeking housing to provide information confirming their stated gender.

The Reasoning Behind the Proposed Changes

HUD has stated that the April 2026 revisions are intended to align the department’s Equal Access rules with President Trump’s Executive Order 14168, titled “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.” Published in January 2025, this order expressed the administration’s stance that gender identity is subjective, sex is not changeable, and the United States only recognizes two sexes – male and female. This clarification is meant to prevent other groups from reaping the benefits of laws designed to help women and ensures that the nation still has access to single-sex spaces, strengthening Title IX of the Educational Amendments Act and Title VII of the Civil Rights Act of 1964. It is also intended to protect the ruling of Bostock v. Clayton County, which forbids employers from discriminating on the basis of sexual orientation, from being applied to matters of gender identity.

Organization officials contend that the proposed revisions would make it easier for shelter providers to protect individuals using single-sex facilities from sexual violence, something the National Online Resource Center on Violence Against Women identifies as a particular concern for homeless women. They also argue that this new proposal corrects issues with the 2016 Equal Access rule which allowed men to take advantage of department programs directed at women and violated the rights of faith-based service programs. The latter point is articulated in Section III of the proposal, which states that forcing faith-based facilities who believe gender is unchangeable to accept individuals with expanded gender identities imposes a potentially illegal burden on free exercise.

Concerns About These Revisions

Many housing and LGBTQ+ advocacy groups have raised concerns that HUD’s revisions will negatively impact LGBTQ+ individuals and families in need of shelter. Some advocates have stated that the new rule will prevent unhoused transgender people from accessing safe emergency sleeping arrangements, jeopardizing the safety of a community already at disproportionate risk of facing discrimination and violence. As noted in a statement by the Equal Rights Center, the increased likelihood that LGBTQ+ youth–specifically transgender youth–will experience homelessness in their lifetime all but guarantees that they will face added illness, injury, and harassment. These concerns led the attorneys general of 21 states to submit a comment letter which accused HUD’s proposal of promoting discrimination against transgender and nonconforming people and violating state and federal laws.

HUD’s revisions have also drawn criticism for their risk of increasing government costs and regulatory fragmentation. In a press release, the National Housing Law Project argued that the proposed policies will increase taxpayer costs because unsheltered people are more likely to interact with public systems in ways ranging from hospital care to encounters with law enforcement. Other legal groups have suggested that this policy’s method of changing established definitions while intervening in existing processes creates an unpredictable regulatory environment and instability within related industries. The most significant is introduced in the relationship between mortgage borrowers and lenders. While other HUD provisions are expected to widen the pool of homes available for purchase by unsheltered people, restrictions on gender introduce new variables which prevent promising candidates from receiving benefits they might otherwise have earned outright.

What Happens Next?

The 60-day public comment period for the proposed revisions ended on June 29, 2026. Over 23,000 comments were received. At the time of writing, it is not yet confirmed whether the rule will be finalized or face any legal challenges, but many housing advocates reportedly believe the rule will move forward “regardless of public opposition.” On July 27, 2026, over 120 House Democrats sent a letter to HUD expressing “strong opposition” to the proposed rule and requesting its withdrawal. HUD has publicized the contact information of relevant officials for those with further questions.

Conclusion

HUD’s latest guideline on use of agency housing programs, the “Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity” rule, has created a stir among housing stakeholders and policymakers. Though the rule was touted by department officials as a way to protect against misuse of gender-specific programs and misapplication of Supreme Court precedent set in Bostock v. Clayton County, its focus on biological sex has drawn accusations of discrimination against the LGBTQ+ community. Legal groups have also highlighted the program as a risk to government fragmentation because of its varied effects across steps in the housing process. The rule is still undergoing review by relevant officials but is anticipated to be passed into law. Its journey is a good reminder of the power legislation wields in citizens’ lives.

 

Frequently Asked Questions

HUD is a federal executive branch agency which administers programs that provide housing and community development assistance and works to ensure fair and equal housing opportunity for all.

The proposed rule would revise HUD regulations to remove all references to “gender” and “gender identity,” moving towards exclusive use of the term “sex.” Additionally, the rule would give grant recipients, owners, managers, and other HUD service providers the ability to require information confirming the stated sex of individuals seeking shelter in sex-specific facilities.

The text of the proposal, along with public comments, are posted on Regulations.gov. 

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