The Trump administration has directed federal agencies to cut budgets and eliminate staff positions, aiming to reduce government spending. Among the departments affected, the Department of Housing and Urban Development (HUD) faces particularly steep reductions, despite playing a critical role in addressing the nation’s housing crisis.
With rents soaring and homeownership increasingly out of reach, HUD’s support for low- and moderate-income households is more vital than ever. This article was issued by USA Today, reporting on the deep concerns raised by housing advocates and local officials over these cuts.
Cuts to HUD Funding and Workforce Spark Alarm
The Trump administration has instructed federal agencies to eliminate staff positions and reduce budgets as part of broader government downsizing efforts. While these measures aim to curb public spending, critics argue that HUD is already underfunded and overstretched.
Rachel Heller, CEO of the Citizens’ Housing and Planning Association (CHAPA), stresses that now is not the time to scale back.
“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.”
A HUD spokesperson acknowledged the situation, stating that while the agency is following administrative directives, it remains committed to serving rural, tribal, and urban communities. However, observers fear that the department’s ability to function effectively will be severely hampered.
Critical Housing Assistance Programs at Risk
HUD administers a range of programs designed to support affordable housing, homeownership, and homelessness prevention. Among the most significant are:
- Housing Choice Voucher Program – Assists 2.3 million households in renting market-rate housing.
- HOME Investment Partnerships Program – Provides funds to communities for the construction and preservation of affordable homes.
- Community Development Block Grants (CDBGs) – Supports infrastructure improvements, including housing development and assistance for low- and moderate-income households.
Without adequate funding, these initiatives could be scaled back, leaving many communities without essential support.
“Deep cuts to HUD’s budget will devastate high housing cost communities like Bend,” said Melanie Kebler, the mayor of Bend, Oregon. “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.”
Impact on Local Communities and Vulnerable Populations
Across the U.S., local governments and nonprofit organisations rely on HUD-backed funding to provide essential services. In Bend, Oregon, CDBGs enable land acquisition for affordable housing, offer homeownership assistance, and fund case management for at-risk individuals.
In Ohio, the Fair Housing Resource Center depends heavily on HUD grants for fair housing enforcement and housing counselling. Executive Director Patricia Kidd highlights the growing strain on residents.
“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,” she said.
Rural areas also face mounting challenges. In Morehead, Kentucky, Frontier Housing uses HUD funds for homeownership programs, water infrastructure, and disaster recovery. President and CEO Tom Manning-Beavin warns that ongoing projects could be stalled indefinitely.
“I have lots of fears,” he stated. “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.”
Housing affordability is a growing concern nationwide, and experts stress that HUD cuts will exacerbate the issue. Research from the Urban Institute indicates that an additional 16 million low- and moderate-income households are cost-burdened and receive no federal assistance.
