Austin

Texas AG Ken Paxton Sues State Housing Agency, Alleging Religious Discrimination Against Faith-Based Groups

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Published on November 26, 2025
Texas AG Ken Paxton Sues State Housing Agency, Alleging Religious Discrimination Against Faith-Based GroupsSource: Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons

Texas Attorney General Ken Paxton is taking legal action against the Texas Department of Housing and Community Affairs (TDHCA), asserting that the state agency's funding rules illegally discriminate against religious groups. Paxton's lawsuit targets existing regulations stipulating that faith-based organizations must eschew religious activities if they wish to access state and federal funds designed for housing stability and homelessness programs. As reported by FOX 7 Austin, Paxton alleges these conditions violate constitutional freedoms by compelling religious organizations to either modify or forsake their spiritual practices.

"State agencies have no authority to force Christians, and other religious organizations to censor their beliefs just to serve their communities," Paxton said, in a view he claims is supportive of constitutionally protected religious liberty. In the lawsuit, Paxton aims to dismantle any provisions that impede religious liberties and potentially strip federal and state funding from these entities based on religious views, as per a statement released by the Texas Attorney General's Office.

The dispute hinges on TDHCA's administration of several initiatives, including the Emergency Solutions Grant and the Bootstrap Loan program. These do not explicitly prevent religious bodies from applying; however, they declare that allocated funds are not to be used for explicitly religious activities, such as worship, instruction, or proselytization. Paxton's lawsuit describes these stipulations as unconstitutional because they set participation in a government benefit contingent on theological determinations.

These actions follow an earlier lawsuit by Paxton this month, taking issue with the Texas College Work-Study Program, among others, imposed by the Texas Higher Education Coordinating Board. These programs also demand from participating employers a guarantee of nonpartisan and nonsectarian positions for students, which Paxton regards as anti-Christian. "These anti-Christian laws targeting religious students must be completely wiped off the books," Paxton conveyed, reinforcing his dedication to safeguarding religious freedom, as chronicled by FOX 7 Austin.