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Texas Attorney General Ken Paxton Sues State Housing Agency Over Alleged Religious Discrimination

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Published on November 25, 2025
Texas Attorney General Ken Paxton Sues State Housing Agency Over Alleged Religious DiscriminationSource: Wikipedia/Gage Skidmore, CC BY-SA 4.0, via Wikimedia Commons

Attorney General Ken Paxton of Texas has launched a lawsuit against the Texas Department of Housing and Community Affairs (TDHCA), challenging regulations he deems unconstitutional for their restrictions on religious organizations in accessing public funds intended for homelessness and housing programs. In a bold move reported by the Texas Attorney General's Office, Paxton takes aim at rules that require entities to refrain from religious activities within programs funded by the TDHCA, arguing that this discriminates against these entities on the basis of religion.

Quoting directly from the Texas Attorney General's Office news release, Paxton stated, "State agencies have no authority to force Christians and other religious organizations to censor their beliefs just to serve their communities," signaling a commitment to safeguarding what he views as constitutionally protected religious liberty within Texas and beyond, this suit follows previous actions that Paxton took against Texas higher education work-study programs holding similar discriminatory provisions against religious students.

The crux of the lawsuit is the accusation that the TDHCA regulations effectively penalize religious organizations by requiring them to compromise or forsake their religious aspects to qualify for state and federal aid. Paxton's stance reflects a storyline that has been unraveling in multiple contexts across the nation, where religious liberty conflicts with public policy and funding mechanisms put forth by various state agencies, as reported by the Texas Attorney General's Office.

The TDHCA hasn’t responded to the lawsuit yet, but the case shows the ongoing debate over how religious organizations can take part in publicly funded programs. Paxton’s lawsuit adds to the national discussion about the balance between church, state, and constitutional rights, as per the Texas Attorney General's Office.