How the Department of Housing Is Faring Under Trump

Since Donald Trump resumed his presidency, significant changes have swept through the federal government, particularly following the appointment of Elon Musk to head the Department of Government Efficiency (DOGE). Numerous departments are undergoing extensive restructuring and significant layoffs.

The Department of Housing and Urban Development (HUD), tasked with shaping national policies and programs related to housing and enforcing fair housing laws, is experiencing similar challenges. Scott Turner, the HUD Secretary appointed by Trump, is actively assessing the agency’s operations and contemplating cuts across several divisions.

During Trump’s initial term, his administration frequently proposed drastic budget cuts, including the elimination of entire affordable housing initiatives. However, the current situation appears even more severe.

“In past proposals, we witnessed sharp reductions and the axing of programs, but Congress held back,” explains Alex Schwartz, an urban policy professor at the New School. He comments on the current state of the department: “In one word: Badly.”

Turner is not just adopting DOGE’s approach of massive spending cuts; he has initiated a task force within HUD specifically aimed at identifying and eradicating waste within the agency.

On March 11, HUD demonstrated its alignment with Trump’s political agenda by rejecting a preliminary request for disaster recovery assistance from Asheville, North Carolina, which has been struggling to recover from Hurricane Helene’s devastation in 2024.

The grounds for this rejection stemmed from the city’s recovery plan, which sought to prioritize help for Minority and Women-Owned Businesses (MWBE). HUD asserted this was inconsistent with Trump’s January Executive Order, “Ending Radical And Wasteful Government DEI Programs And Preferencing,” which effectively dismantled diversity, equity, and inclusion (DEI) initiatives funded at the federal level.

Read More: What Is DEI and What Challenges Does It Face Amid Trump’s Executive Orders?

“HUD is eager to assist thousands of North Carolinians in rebuilding after Hurricane Helene by directing funding assistance toward impacted businesses, nonprofit organizations, and communities,” Turner stated. “Let me be perfectly clear: DEI initiatives are no longer a focus at HUD. We will not allocate funds to any program or grantee that does not align with President Trump’s Executive Orders.”

Beyond the political upheaval, Schwartz warns that financial cutbacks could severely undermine HUD’s core responsibilities, including enforcing fair housing laws and promoting affordable housing. This is particularly striking considering Trump campaigned on a platform of affordability.

“HUD is not a high-visibility agency, and much of its budget has historically gone towards maintaining existing commitments for housing and rental assistance. There’s been minimal growth over the past decade,” Schwartz notes. He adds that the areas targeted for cuts represent a mere fraction of the federal budget, emphasizing that many smaller organizations rely heavily on HUD’s financial backing.

Here’s a closer look at the current challenges facing the Department of Housing and Urban Development under the Trump Administration.

Proposed Staff and Field Office Cuts

As federal departments grapple with significant staffing reductions, HUD is bracing for widespread layoffs, which will add to the losses of probationary employees already dismissed. Turner is committed to eliminating “waste” in the department, mirroring Musk’s approach with DOGE.

While specific numbers of layoffs have yet to be confirmed, a report from the Center on Budget and Policy Priorities (CBPP) suggests that the cuts could affect 50% of staff in the HUD office that manages vouchers, public housing, and Native American housing programs, which together support 7 million residents. Other potential impacts include a 44% reduction in the office overseeing project-based rental assistance, an 84% cut in the office responsible for homelessness assistance and disaster recovery grants, and a 77% cut in the office that enforces fair housing laws.

“HUD is currently reviewing every program and procedure to identify areas for increased efficiency. This is not inherently negative… change can be beneficial,” Turner stated in a social media video. “We aim to adopt a precise approach, ensuring we retain top talent and institutional knowledge to best serve the American populace.”

Antonio Gaines, president of AFGE National Council 222, a union representing HUD employees, informed Bloomberg Law that the Trump Administration plans to cut 50% of HUD’s workforce, including positions within departments that enforce civil rights laws and facilitate disaster recovery.

“There is substantial evidence that HUD’s initiatives effectively reduce homelessness and assist individuals in affording housing,” asserts Will Fischer, author of the CBPP report. “However, these programs currently reach only a small fraction of those in need due to funding limitations, and the proposed cuts would disrupt and undermine what little progress has been made.”

Margaret Salazar, a seasoned housing expert who has worked at HUD under three administrations, believes these programs will persist and continue to distribute funds to communities nationwide, albeit with diminished effectiveness due to a reduced workforce.

“A unique aspect of HUD is that half of its staff is located in field offices,” Salazar explains. “This is essential for the agency’s connections with local governments, nonprofits, housing authorities, and tribal communities.”

Bloomberg reported on March 5 about plans to close numerous field offices across the country. However, federal housing law mandates that HUD maintain at least one field office in each state to process applications, ensuring that the Federal Housing Administration (FHA)—which is also facing significant cuts—can continue to provide mortgage insurance for homebuyers.

Salazar shares that her former colleagues at HUD headquarters and in the field are confused about the ongoing changes.

“They report a lack of clear guidance or justification regarding what will be cut or preserved. There’s a significant amount of anxiety,” she notes. “One colleague expressed that layoffs feel personal, but as a federal employee, the uncertainty extends beyond individual job loss to the broader impact on housing projects in progress.”

Contract Reductions Impacting Nonprofits and Grant Losses

The Trump Administration has begun terminating grants to organizations focused on enforcing the Fair Housing Act, reduced HUD’s workforce, and is threatening further cuts. Additionally, at least $60 million in funding aimed primarily at affordable housing initiatives nationwide has been stalled, and HUD’s $1 billion Green and Resilient Retrofit Program, which aims to preserve affordable housing, has also been put on hold, according to the Associated Press.

A portion of the $60 million was designated for small community nonprofits involved in affordable housing development through Section 4 programming, which is designed to assist low-income individuals and families. Enterprise Community Partners is among the intermediaries that have used Section 4 grants to support hundreds of organizations across the U.S., working alongside LISC and Habitat for Humanity.

On February 26, Enterprise Community Partners received notice that HUD intends to terminate its Section 4 nonprofit capacity-building grants and technical assistance program.

“Let there be no doubt: Today’s decision will increase costs for families, hinder the development of affordable homes, eliminate jobs, and diminish opportunities for countless communities across all 50 states,” stated Shaun Donovan, president and CEO of Enterprise and former HUD Secretary, in the organization’s announcement. “We will pursue every possible avenue to ensure these vital programs are not stripped away from the neighborhoods and working Americans who depend on them.”

Salazar, serving as CEO of REACH, a nonprofit affordable housing developer in Oregon and Washington State, has reported that two of REACH’s projects financed by HUD awards have been stalled due to federal funding freezes. She emphasizes that for her organization, the $4.5 million in question may seem minor for HUD but represents a significant risk to their senior and disability-designated projects.

“One crucial factor for housing developers is certainty, allowing us to plan timelines and initiate projects,” Salazar states. “That certainty is currently lacking.”

The potential termination of the Green and Resilient Retrofit Program is particularly concerning for Salazar, who views it as “one of the few substantial housing investments HUD has made in recent years.”

The Green and Resilient Retrofit Program, part of the Inflation Reduction Act, aims to provide direct loans and grants for projects that enhance energy and water efficiency or bolster climate resilience for affordable housing.

“HUD plays a vital role in ensuring Americans have access to fair and affordable housing. The previous Administration’s extreme focus on energy efficiency diverted essential resources and funding from the department’s core mission,” a HUD spokesperson stated in an email to TIME. “The department is currently exploring options to guarantee that rural, tribal, and urban communities receive the necessary resources, which do not include solar panels.”

Effects on Fair Housing Initiatives

On February 27, HUD and DOGE terminated 78 grants across 33 states, amounting to over $30 million, which had been allocated for fair housing organizations, according to the National Fair Housing Alliance (NFHA).

Rather than focusing on housing development, these nonprofits are dedicated to combating housing discrimination, enforcing fair housing laws, and educating individuals about their rights.

In response to these actions, four fair housing organizations—the Massachusetts Fair Housing Center, the Intermountain Fair Housing Council, the Fair Housing Council of South Texas, and the Housing Research and Advocacy Center—filed a lawsuit against HUD and DOGE, claiming that the cancellation of their Fair Housing Initiatives Program (FHIP) contracts was arbitrary and lacked sufficient rationale. All four plaintiffs are members of the National Fair Housing Alliance.

“The cancellation of the plaintiffs’ FHIP grants has had an immediate and devastating effect. Programs have had to close, services have been terminated, staff members laid off, and core activities have been severely curtailed,” the lawsuit states. “Many class members operate in states where no other organization engages in such work, and many serve communities that are often overlooked and underserved: rural areas, low-income neighborhoods, immigrant groups, veterans, and individuals with disabilities.”

Concurrently, Senator Elizabeth Warren, the leading Democrat on the Senate Committee on Banking, Housing, and Urban Affairs, along with Representative Maxine Waters, the top Democrat on the House Financial Services Committee, released a statement on February 27 criticizing Turner’s termination of the anti-discrimination housing rule. “At a time when the nation is facing a severe housing crisis and unprecedented levels of housing discrimination complaints, this blatant assault on civil rights regresses us to an era when the federal government condoned segregation and discrimination,” the statement declared.

On March 3, Waters personally delivered a letter to Turner and led a protest outside HUD’s headquarters in Washington, D.C., to raise awareness about how the actions of Trump and DOGE could exacerbate the ongoing housing and homelessness crisis and worsen discrimination in housing.

Following this, on March 17, Warren and Waters, joined by 106 Congressional Democrats, sent a letter to Turner “seeking clarification on the recent actions taken by the Trump Administration to undermine the enforcement of the Fair Housing Act of 1968 and other housing-related civil rights laws.”

Schwartz argues that the defunding of these fair housing organizations “signals” to the public that “discrimination is not a concern of the federal government and certainly does not promote education about individuals’ rights.”

In response to Warren and Waters’ statements, Turner appeared on Fox News with Bret Baier, asserting that HUD “will enforce the law” and is “committed to upholding the Fair Housing Act.”

A New Approach to Affordable Housing

While the Trump Administration implements cuts, Secretary Turner and Trump have proposed strategies to tackle the housing crisis.

One proposed solution involves constructing homes on some of the 650 million acres of federal land to address the housing shortage. HUD announced on March 17 that this task force will be led by Turner in collaboration with the Department of Interior.

Turner and DOI Secretary Doug Burgum co-authored an op-ed in the Wall Street Journal about their initiative, asserting that “America needs more affordable housing” and that “unlocking federal land” is key to achieving this goal. They emphasized that “overlooked rural and tribal communities” will be the focus of this task force.