HUD cuts, layoffs will 'devastate' communities, worsen housing crisis, observers say
The Trump administration has instructed federal departments to eliminate staff positions and look for ways to cut budgets, the latest in a series of steps taken in Washington to slash spending and shrink government programs.
But at the federal agency responsible for housing matters, staff and budget dollars are already stretched too thin, observers say. In the midst of a housing crisis that’s pinching Americans across the country, having the Department of Housing and Urban Development operating at 100% of its capacity is crucial, they believe.
“We know everybody is feeling the pain of housing,” said Rachel Heller, CEO of the Massachusetts-based Citizens’ Housing and Planning Association (CHAPA). “Housing is unaffordable for everyone at just about every income level. We would hope that this would be a moment when the federal government would be doing more, not less.”
What does HUD do?
Like many housing organizations across the country, CHAPA offers a long list of programs and initiatives to help residents in its area rent, buy, age in a supportive environment, or get off the street or out of a shelter into something more permanent, most of them supported by money and staff from HUD. In February, analysts at the Urban Institute, a Washington, D.C.-based think tank, compiled a searchable tracker of HUD programs and their influence in all 50 states.
Among them: the Housing Choice Voucher Program, which provides money to 2.3 million households to rent market-rate housing units. The HOME Investment Partnerships Program helps communities invest in building and preserving affordable housing. And Community Development Block Grants support infrastructure investments in communities beyond just housing.
“Deep cuts to HUD’s budget will devastate high housing cost communities like Bend,” said Melanie Kebler, mayor of Bend, Oregon, in an email exchange with Paste BN. “The vouchers and programs that HUD funds are critical to keep veterans, kids, and families in their homes and help people experiencing homelessness off the street and into housing.”
In an emailed statement, a HUD spokesperson told Paste BN that the department "is following direction from the administration while also ensuring the department continues to deliver on its critical functions, mission to serve rural, tribal and urban communities and statutory responsibilities."
HUD programs around the country
In Bend, Community Development Block Grants enable nonprofit organizations to acquire land for affordable housing development and offer down payment assistance for homeownership for low- and moderate-income residents, Kebler said. They also support case management for the homeless or those at risk of losing their homes, among other things.
The Fair Housing Resource Center, which serves residents across three counties in northeast Ohio, also relies heavily on HUD programs and staff to carry out its mission. Though there are plenty of good intentions in the private sector, which often likes to fund innovative start-up efforts, “public funding remains the backbone of fair housing enforcement, housing counseling, and stability programs,” Executive Director Patricia Kidd said.
“Many residents in our region are rent-burdened, and most seniors we serve can no longer afford to age in place. These individuals worked hard their entire lives, yet struggle to survive on Social Security as market rents continue to rise,” Kidd said.
Two days after Kidd spoke with Paste BN, the Fair Housing Resource Center received a letter from HUD "terminating" the agency's activities -- cancelling contracts, in Kidd's words.
"This decision to defund our fair housing enforcement work will have devastating consequences for the communities we serve, particularly low-income residents facing housing discrimination and eviction, many who are persons with disabilities," she said.
In rural Morehead, Kentucky, Tom Manning-Beavin is president and CEO of Frontier Housing, which is one of thousands of HUD-certified housing counseling agencies around the country.
For its direct housing programs, Frontier relies on a hodgepodge of federal funding, including money from HUD and the U.S. Department of Agriculture, Manning-Beavin said. In addition, HUD Community Development Block Grants are used frequently in Morehead for things like water infrastructure. What’s more, HUD assistance has been invaluable for disaster recovery, including from a set of devastating floods in 2022 and more flooding this February.
“I have lots of fears,” Manning-Beavin said. “We're in the middle of an environmental review on a disaster recovery grant to build 18 rental units. If HUD's not able to complete their portion of that environmental review, we'll never start that.”
Economic development in Appalachia meets many roadblocks, Manning-Beavin said, and funding from the federal government is crucial. “Not everyone has access to the same bootstraps,” he told Paste BN. “And some people's bootstraps are incredibly short or nonexistent, and our work to put them into a homeownership situation is the bootstraps they need. With an incredibly modest investment, we're creating some legacies of wealth building and helping households get that start.”
Patricia Kidd, of Ohio’s Fair Housing Resource Center, agrees. “There is often a perception that anyone impacted by these issues are ‘those people,’ but the reality is that they are our parents, grandparents, neighbors and colleagues."
In a time of increasingly expensive housing, financial strain isn’t limited to a specific group, Kidd added. It may take only one unexpected event, such as a medical emergency or job loss, to push someone into a crisis in which they are no longer able to afford housing or essential medications.
Many observers say that if anything, HUD needs more resources, not fewer.
“Already, these programs are underfunded compared with their need,” the Urban Institute researchers wrote. “An additional 16 million households with low and moderate incomes are cost burdened and currently receive no federal housing assistance. A large share of the people affected are children, seniors, or those with a disability, yet funding levels have not meaningfully increased over the past decade to keep up with growing needs.”
Heller notes that the “chaos” caused by the various directives from Washington is probably already disrupting programs that strive for consistency. “There is a tremendous amount of work in administering these programs,” she said. “If you don’t have adequate staffing, the funds don’t get out.”
“Many HUD employees are already overworked and short-staffed, yet they continue to provide exceptional support for housing initiatives,” Ohio’s Kidd said. Deep cuts to HUD funding and staff mean “the impact will be felt across all communities, because at the end of the day, if you can’t afford your rent, it doesn’t matter how you voted.”
After learning her programs would be terminated, Kidd later added in an email that "Dr. King famously said, ‘The time is always right to do what is right.’ HUD’s decision to terminate our fair housing enforcement funding is not just a bureaucratic cut—it is a direct attack on the civil rights protections he fought for."
She continued: "The Fair Housing Act was one of the final pieces of legislation Dr. King championed before his assassination, recognizing that without fair housing, racial and economic justice would remain out of reach."
This story was updated to include new information.