The Trump administration on Wednesday announced plans for a rule change that would allow homeless shelters to refuse to house transgender people.

Secretary of Housing & Urban Development (HUD) Ben Carson announced the plan in a statement.

The proposal would allow homeless shelters to establish their own admission policies on transgender people.

“This important update will empower shelter providers to set policies that align with their missions, like safeguarding victims of domestic violence or human trafficking,” Carson said. “Mission-focused shelter operators play a vital and compassionate role in communities across America. The Federal Government should empower them, not mandate a single approach that overrides local law and concerns. HUD also wants to encourage their participation in HUD programs. That’s exactly what we are doing with this rule change.”

The Obama administration had previously interpreted a 2012 Equal Access Rule barring LGBT discrimination in government-subsidized shelters to include gender identity.

The Trump administration rule would allow a female homeless shelter to “decline to accommodate a person who identifies as female but who is a biological male.” There is “anecdotal evidence” that cisgender women may fear being housed with transgender women, the agency said in its report.

The proposal comes two weeks after the Supreme Court in Bostock determined that the term sex under Title VII of the Civil Rights Act of 1964 includes sexual orientation and gender identity. While the case revolved around employment, the high court's ruling should extend to all federal programs that ban discrimination based on sex, such as the Fair Housing Act.

National Center for Transgender Equality Executive Director Mara Keisling said in a statement that the proposal “flies in the face of the Bostock Supreme Court ruling” and would “not stand.”