Texas Attorney General Ken Paxton on Nov. 24, 2025, sued his own state’s housing agency for rules that allegedly restrict Christian and other religious organizations from receiving public funds to serve homeless and low-income people. / Credit: Drew Angerer/Getty Images

Washington, D.C. Newsroom, Nov 25, 2025 / 17:31 pm (CNA).

Texas Attorney General Ken Paxton sued his own state’s housing agency for rules that allegedly restrict Christian and other religious organizations from receiving public funds to serve homeless and low-income people. The lawsuit alleges that rules established by the Texas Department of Housing and Community Affairs (TDHCA) only allow organizations to receive federal and state funds for homeless and low-income housing programs if they agree those programs will be entirely secular and will not include any religious activities.

According to the lawsuit, those rules violate religious liberty protections in the First Amendment of the U.S. Constitution and in Article 1, Sec. 6-7 of the Texas Constitution because they put restrictions on religious entities for participation in public programs in which secular entities can freely participate.

“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 Nov. 24 news release.

“Constitutionally protected religious liberty must be upheld in Texas and across the country,” he added. “These TDHCA’s provisions within certain programs, which deter funding from going towards churches and religious organizations, must be struck down.”

The lawsuit challenges TDHCA rules for two programs.

It states the homelessness program prohibits funds from being used for “sectarian or explicitly religious activities such as worship, religious instruction, or proselytization.” It similarly states the Bootstrap Loan Program blocks funding that supports “any explicitly religious activities such as worship, religious instruction, or proselytizing” and requires recipients to enshrine the prohibition in its official policies.

The lawsuit argues that the government must maintain neutrality on religious matters, adding: “It cannot exclude religious organizations from public benefits because of their faith, nor may it condition participation on theological choices about worship, instruction, or proselytization.”

Paxton is asking the district court of Travis County to issue an injunction that blocks TDHCA from enforcing those rules, which he argues are discrimination against religious entities.

TDHCA did not respond to a request for comment from CNA.

Less than two weeks ago, Paxton sued the Texas Higher Education Coordinating Board over similar concerns. The lawsuit argues that three university work-study programs exclude religious organizations and students receiving religious instruction.

In a Nov. 14 statement, he said: “These anti-Christian laws targeting religious students must be completely wiped off the books.”

Paxton is on the opposite side of another lawsuit related to religious freedom that began in February 2024. In that lawsuit, the attorney general is trying to shut down Annunciation House, a Catholic nonprofit that provides assistance to migrants.

The attorney general accused Annunciation House of “alien harboring,” which it denies. The nonprofit argues it has never violated state law and that its charitable activities are rooted in its religious mission.