Justice Department asks judge to block Evanston, Illinois, housing reparations program funded by cannabis tax revenue

The Justice Department, under President Donald Trump, asked a federal judge to halt the first phase of a housing “reparations” program in Evanston, Illinois, while related litigation proceeds, according to a report from The Hill on June 17, 2026.

The request centers on a lawsuit challenging the program, described as Evanston’s effort to provide benefits to Black residents through a locally funded housing component. The Hill reported that the program was created by the Evanston City Council and that it earmarked $10 million generated from cannabis sales taxes in 2019 for the initial phase.

According to the report, the Justice Department is seeking to intervene in the case and to argue that the program is “racially discriminatory” and unconstitutional. The federal government’s filing requests that the judge stop implementation while the legal challenge is considered.

The Hill also reported that the effort is framed as a first-of-its-kind local reparations program, and that it stems from city revenue tied to Illinois cannabis sales. The suit and the government’s intervention request raise questions about how local governments may structure race-targeted relief programs and what standards apply under the U.S. Constitution.

The procedural posture described in the report would mean the court’s decision could affect whether the city proceeds with the first $10 million phase while the merits of the challenge are litigated, and it could influence the scope of the federal government’s role in enforcing constitutional limits on local actions.

As the case moves forward, the next steps would depend on what the judge does with the federal government’s request to intervene and to pause the program, and whether the court resolves issues tied to constitutional claims and the program’s funding and implementation design, according to the report’s description of the dispute.