Trump Plans to Cut Half of HUD Workforce, Raising Housing Crisis Concerns

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Trump Plans to Cut Half of HUD Workforce, Raising Housing Crisis Concerns/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration proposes cutting 50% of HUD’s workforce, targeting employees vital to disaster relief, rental assistance, and fair housing enforcement. Critics warn the cuts could stall key programs aiding millions of Americans, while HUD claims it will maintain core functions. The plan aligns with broader efforts to reduce government spending.

FILE – Housing and Urban Development Secretary Scott Turner, walks towards the West Wing following a TV interview at the White House, Wednesday, Feb. 19, 2025, in Washington. (AP Photo/Manuel Balce Ceneta, File)

Trump Administration’s Proposed HUD Cuts Quick Looks:

Scope of Cuts: Proposal targets 4,000 HUD jobs, affecting over a dozen programs.
Disaster Relief Impact: 84% staff cut at the Office of Community Planning and Development may slow recovery efforts.
Rental Assistance: 50% reduction at Public and Indian Housing Office could delay Section 8 payments for 3.5 million households.
First-Time Homebuyers: Office of Housing may lose 44% of staff, hindering FHA mortgage access.
Fair Housing Enforcement: Office of Fair Housing could face a 77% reduction, weakening discrimination investigations.
Administration Justification: Cuts aim to improve efficiency; $1.9B in “misplaced funds” and $260M in “wasteful contracts” cited.
Critics’ Concern: Advocates fear delays in funding, homelessness increases, and displacement of low-income tenants.
HUD’s Stance: Spokesperson claims disaster relief won’t be impacted, but details remain unclear.
Turner’s Role: HUD Secretary Scott Turner leads cuts with Musk-inspired efficiency task force.
Political Context: Cuts reflect Trump’s broader anti-DEI stance; $4M in diversity contracts canceled.

Trump Plans to Cut Half of HUD Workforce, Raising Housing Crisis Concerns

Deep Look:

The Trump administration’s proposal to slash half of the Department of Housing and Urban Development (HUD) workforce has sparked widespread concern among housing advocates and former agency officials. Internal documents obtained by the Associated Press reveal plans to eliminate approximately 4,000 positions, jeopardizing key programs that millions of Americans rely on.

HUD spokesperson Kasey Lovett emphasized that staffing evaluations are ongoing and the documents “should not be taken as final.” However, the proposed cuts align with the administration’s broader cost-cutting agenda led by HUD Secretary Scott Turner, who recently highlighted $1.9 billion in recovered funds and $260 million in canceled “wasteful” contracts.

Which HUD Services Are at Risk?

Disaster Relief Efforts

The Office of Community Planning and Development (CPD), responsible for distributing billions in disaster recovery funds, could see its staff cut by 84%—from 936 employees to just 150. CPD oversees programs like the Community Development Block Grant (CDBG) and provides crucial homelessness initiatives and infrastructure repair after natural disasters.

“That would lead to significant delays in funding for communities nationwide,” warned Ann Oliva, CEO of the National Alliance to End Homelessness.

Despite the cuts, HUD claims that disaster relief efforts “will not be impacted,” though no specifics were provided.

Rental Assistance and Public Housing

Proposed cuts to the Office of Public and Indian Housing—which supports Section 8 vouchers and public housing for over 4.5 million households—would reduce its workforce by 50%.

“Without timely payments, landlords may exit the program, leaving low-income tenants vulnerable,” said Georgi Banna, general counsel at the National Association of Housing and Redevelopment Officials.

These delays could lead to evictions or displacement if landlords withdraw due to contract breaches.

First-Time Homebuyers

The Office of Housing, which facilitates FHA-insured loans for middle- and lower-income Americans, faces a 44% staff reduction. FHA programs are crucial for first-time homebuyers, and cuts could slow loan approvals and housing counseling services.

“There are going to be consequences all the way across the board,” said Antonio Gaines, president of AFGE National Council 222, representing HUD employees.

Housing Discrimination Enforcement

The Office of Fair Housing and Equal Opportunity (FHEO) could lose nearly 77% of its staff, including employees investigating housing discrimination claims. This raises concerns about weakening the enforcement of the Fair Housing Act at a time when rental discrimination and segregation persist nationwide.

“These cuts would cripple basic agency functions,” said Shamus Roller, head of the National Housing Law Project.

Political and Economic Context:

The staffing reductions reflect President Trump’s push to downsize federal agencies, spearheaded by Turner’s Department of Government Efficiency (DOGE)—a task force inspired by billionaire Elon Musk. DOGE aims to streamline operations, though critics argue it prioritizes budget cuts over public welfare.

Notably, Turner announced the cancellation of $4 million in diversity, equity, and inclusion (DEI) contracts, underscoring the administration’s opposition to such initiatives.

“HUD is following the administration’s direction while upholding its core mission,” said Lovett, pointing to rural and urban communities’ ongoing support.

What’s Next?

While the proposed cuts are not yet finalized, housing advocates warn of long-term damage to vital services if approved. Lawmakers are expected to debate the proposal in the coming weeks, with Democrats likely to push back against the deep reductions.