Since Donald Trump took office again, a wave of significant transformations has rippled through the federal government, notably following Elon Musk’s appointment as the head of the Department of Government Efficiency (DOGE). A multitude of agencies are undergoing major overhauls, accompanied by substantial layoffs.
Similarly, the Department of Housing and Urban Development (HUD) is facing substantial hurdles. Tasked with devising national housing policies and enforcing fair housing regulations, HUD is feeling the impact of these changes. Secretary Scott Turner, appointed by Trump, is currently evaluating the agency’s operations and contemplating budget cuts across various divisions.
During Trump’s previous presidency, his administration often proposed significant budget reductions, including the complete elimination of certain affordable housing programs. The current circumstances, however, seem to be more dire.
“In earlier proposals, we observed drastic cuts and the termination of programs, but Congress intervened,” states Alex Schwartz, a professor of urban policy at the New School. He characterizes the current state of HUD with a single word: “Badly.”
Turner is not merely echoing DOGE’s strategy of sweeping budget cuts; he has launched a task force at HUD dedicated to pinpointing and eliminating inefficiencies within the agency.
On March 11, HUD illustrated its alignment with Trump’s political objectives by denying a preliminary request for disaster recovery aid from Asheville, North Carolina, a city still reeling from the aftermath of Hurricane Helene in 2024.
The refusal was based on the city’s recovery plan, which prioritized support for Minority and Women-Owned Businesses (MWBE). HUD contended that this approach was at odds with Trump’s January Executive Order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing,” which effectively dismantled federally funded diversity, equity, and inclusion initiatives.
Read More: What Is DEI and What Challenges Does It Face Amid Trump’s Executive Orders?
“HUD is committed to assisting thousands of North Carolinians in their recovery from Hurricane Helene by directing funding to affected businesses, nonprofit organizations, and communities,” Turner emphasized. “Let me clarify: DEI initiatives are no longer a priority at HUD. We will not fund any programs or grantees that do not align with President Trump’s Executive Orders.”
Beyond the political turmoil, Schwartz cautions that financial cutbacks could severely compromise HUD’s essential functions, including enforcing fair housing laws and fostering affordable housing. This is particularly alarming given Trump’s campaign promises centered around affordability.
“HUD is not a high-profile agency, and a significant portion of its budget has historically been allocated to fulfilling existing commitments for housing and rental assistance. Growth has been minimal over the past decade,” Schwartz observes. He points out that the areas slated for cuts represent only a small part of the federal budget, stressing that many smaller organizations depend heavily on HUD’s financial support.
Here’s a closer examination of the current challenges confronting the Department of Housing and Urban Development under the Trump administration.
Proposed Staff and Field Office Cuts
As federal departments contend with considerable staffing reductions, HUD is preparing for extensive layoffs, which will compound the losses of recently terminated probationary employees. Turner is focused on eliminating perceived inefficiencies within the department, mirroring Musk’s philosophy with DOGE.
Although specific layoff figures are yet to be confirmed, a report from the Center on Budget and Policy Priorities (CBPP) indicates that cuts could potentially impact 50% of staff in the HUD office responsible for managing vouchers, public housing, and Native American housing programs, collectively supporting 7 million residents. Other affected areas may include a 44% reduction in the office overseeing project-based rental assistance, an 84% cut in the office dedicated to homelessness assistance and disaster recovery grants, and a staggering 77% cut in the office responsible for enforcing fair housing laws.
“HUD is currently evaluating every program and procedure to identify opportunities for enhanced efficiency. This is not inherently negative… change can be advantageous,” Turner remarked in a social media video. “We aim to take a precise approach, ensuring we retain top talent and institutional knowledge to best serve the American public.”
Antonio Gaines, president of AFGE National Council 222, a union representing HUD personnel, communicated to Bloomberg Law that the Trump administration intends to cut 50% of HUD’s workforce, including roles within departments that uphold civil rights laws and facilitate disaster recovery.
“There is ample evidence demonstrating that HUD’s initiatives effectively mitigate homelessness and help individuals afford housing,” claims Will Fischer, the author of the CBPP report. “However, these programs currently reach only a fraction of those in need due to funding constraints, and the proposed cuts would disrupt and endanger the limited progress that has been made.”
Margaret Salazar, a veteran housing expert with experience at HUD under three different administrations, believes these programs will continue to exist and distribute funds across communities nationwide, albeit with reduced efficacy due to a smaller workforce.
“A unique feature of HUD is that half of its workforce is based in field offices,” Salazar elaborates. “This is crucial 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 nationwide. However, federal housing laws require HUD to maintain at least one field office in each state to process applications, ensuring that the Federal Housing Administration (FHA)—which is also facing substantial cuts—can continue offering mortgage insurance to homebuyers.
Salazar notes that her former colleagues at HUD headquarters and in the field are perplexed by 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 observes. “One colleague expressed that layoffs feel personal, but as a federal employee, the uncertainty extends beyond individual job loss to the broader implications for housing projects currently underway.”
Alex Wong—Getty Images
Contract Reductions Impacting Nonprofits and Grant Losses
The Trump administration has begun canceling grants for organizations dedicated to enforcing the Fair Housing Act, reducing HUD’s workforce, and signaling potential further cuts. Additionally, at least $60 million in funding aimed primarily at affordable housing initiatives across the nation has been stalled, and HUD’s $1 billion Green and Resilient Retrofit Program, designed to preserve affordable housing, has also been put on hold, according to the Associated Press.
A portion of the $60 million was allocated for small community nonprofits engaged in affordable housing development through Section 4 programming, which aims to assist low-income individuals and families. Enterprise Community Partners is one of the intermediaries that has utilized Section 4 grants to support numerous organizations nationwide, collaborating with LISC and Habitat for Humanity.
On February 26, Enterprise Community Partners received notice from HUD that the department intends to terminate its Section 4 nonprofit capacity-building grants and technical assistance program.
“Let there be no doubt: Today’s decision will raise costs for families, impede the development of affordable homes, eliminate jobs, and reduce opportunities for countless communities across all 50 states,” declared 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 rely 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 crucial 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,” stated a HUD spokesperson 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, totaling over $30 million, which had been designated for fair housing organizations, as reported by 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 justification. 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 asserts. “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, issued 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 defunding 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
As the Trump administration implements budget cuts, Secretary Turner and Trump have also proposed new strategies to address the housing crisis.
One suggested solution involves constructing homes on some of the 650 million acres of federal land to alleviate the housing shortage. HUD announced on March 17 that this task force will be led by Turner in partnership with the Department of Interior.
Turner and DOI Secretary Doug Burgum co-authored an op-ed in the Wall Street Journal regarding their initiative, asserting that “America needs more affordable housing,” and that “unlocking federal land” is essential to achieving this goal. They emphasized that “overlooked rural and tribal communities” will be at the forefront of this task force.
“Historically, building on federal land is fraught with bureaucratic hurdles—lengthy environmental reviews, complicated transfer protocols, and misaligned agency priorities. This collaboration aims to streamline these processes,” Turner and Burgum concluded.
