Washington, D.C. – Housing advocates across the country are sounding the alarm as the Trump Administration considers sweeping cuts to the Department of Housing and Urban Development (HUD).
YIMBY Action and its national chapters are urging the administration to preserve critical federal housing programs and staff, warning that deep budget reductions could drive up housing costs, increase homelessness, and stall crucial housing policy reforms.
The proposed cuts, which would slash HUD staffing by 50% and eliminate key divisions, threaten to disrupt bipartisan efforts to expand housing supply and remove restrictive regulations. While Republican Congressman Mike Flood has publicly emphasized the need for increasing housing production, housing advocates fear the administration’s budgetary decisions could undermine these goals.
According to a Bloomberg Law report, the newly-created Department of Government Efficiency (DOGE) is targeting HUD for major funding reductions. If enacted, these cuts would significantly weaken federal efforts to support housing accessibility and affordability. Specifically, they would:
- Eliminate HUD’s research and policy development division, which provides data-driven insights on housing issues.
- Dismantle the fair housing enforcement division, weakening protections against housing discrimination.
- Reduce staffing for Section 8 (housing choice vouchers) and Section 9 (public housing) programs, which serve low-income Americans.
Laura Foote, Executive Director of YIMBY Action, condemned the proposed cuts as “reckless” and counterproductive. “People need relief from high housing prices, not irresponsible cuts to existing programs,” Foote said. “If these cuts go through, the impact will be significant and long-lasting, stalling the production of desperately needed housing.”
Concerns over HUD funding were exacerbated by a January 27 memo from the White House Office of Management and Budget, which temporarily froze federal financial assistance programs. Although a judge issued a stay before the memo could take effect, the uncertainty has already caused financial institutions and private funders to pull back from subsidized housing projects.
“This chaos is already freezing the pipeline of affordable housing in America,” said YIMBY Action’s Marketing & Communications Director Jae Garner. “The impact of these cuts could set us back decades. It can take up to a decade to get new homes funded, approved, and built—this will only make the process even slower.”
Newly-confirmed HUD Secretary Scott Turner has publicly supported pro-housing policies and emphasized the importance of maintaining programs like the Housing Choice Voucher Program. However, housing advocates warn that, without sufficient staffing, even well-intended initiatives will be impossible to implement.
Additionally, legal experts suggest that many of the proposed budget cuts may violate federal law, as HUD is required to carry out specific programs that Congress has already funded. Advocates are calling on Secretary Turner to uphold HUD’s obligations and resist efforts to dismantle essential housing programs.
If enacted, the proposed HUD cuts could worsen America’s housing crisis by slowing down the construction of new homes and reducing access to affordable housing options. The damage would extend beyond low-income communities, affecting middle-class families and first-time homebuyers by driving up housing costs across the board.
“All housing production in America will suffer from a haphazard approach to cost-cutting,” said Foote. “These proposed cuts would make it even less likely that America can address its housing shortage. Millions of Americans, especially the most vulnerable, will pay more for housing as a result.”
A trial-setting conference is scheduled for March 28, and housing advocates are urging the public and lawmakers to push back against these cuts before they become reality.
