Statement: Housing Advocates Warn Cuts Would Increase Housing Prices for Millions of Americans; Urge Trump Administration to Preserve Federal Housing Programs, Staff.

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Washington, D.C.— YIMBY Action and its chapters across the United States urge the Trump Administration to preserve existing federal housing programs and staff at the Department of Housing and Urban Development (HUD). If the Trump Administration follows through on its intention to make massive cuts to HUD staffing and programs, housing prices will increase significantly for millions of Americans. These cuts will destabilize housing, increase homelessness, stall policy reforms across the country, and reduce the number of new homes—especially subsidized affordable homes—getting built.

Massive cuts to HUD undermine bipartisan efforts to increase housing production and reduce unnecessarily restrictive regulations. While Republican Congressman Mike Flood is speaking publicly about the bipartisan consensus to increase housing supply, the Trump Administration risks harming those efforts with haphazard and potentially illegal cuts to critical programs. The scale of cuts under consideration would endanger critical work ranging from technical assistance helping cities reduce regulatory barriers to direct housing subsidies.

Across the country, there is broad bipartisan support to bringing down the cost of living for America’s struggling middle class. Cuts to housing subsidies and pro-housing programs will only increase the cost of housing and damage the entire housing production industry.

The federal Department of Housing and Urban Development (HUD) is the target for significant planned funding cuts by the new Department of Government Efficiency (DOGE). Bloomberg Law reported that HUD’s union president says that HUD plans to “discharge 50% of its workforce.”

Specifically, cuts outlined by Bloomberg Law would include:

• The research and policy development division;
• The division that enforces fair housing laws; and
• The division that administers programs under section 8 (housing choice vouchers) and section 9 (public housing) of the 1937 US Housing Act.

“This is reckless and does nothing to lower the exorbitant housing prices Americans face,” said Laura Foote, Executive Director and Founder of YIMBY Action. “People need relief from high housing prices, not irresponsible cuts to existing programs. If these cuts go through, the impact will be significant and long-lasting. A haphazard approach will negatively impact the production of housing of all types—housing we need now more than ever.”

The threat of HUD cuts came just three weeks after a White House Office of Management and Budget memo on January 27, ordering all federal agencies, including HUD, to temporarily freeze federal financial assistance programs. The order would have halted all congressionally approved grants and loans (excluding direct individual aid), as well as numerous affordable housing proposals. While a judge issued a stay before the memo could go into effect, affordable housing developers have reported to us that many banks and other private funders who often contribute to subsidized projects are already pulling back. The fear that other funding instruments—such as project-based vouchers—will soon disappear is putting thousands of new homes and housing rehabilitation projects on ice.

This chaos is already freezing the pipeline of subsidized affordable housing in America, and it risks endangering the entire housing industry. We are deeply concerned this will impede pro-housing policy developments already in motion at HUD. Items on the chopping block include research demonstrating the value of pro-housing policies, technical support to cities trying to adopt pro-housing policies, efforts to remove zoning barriers in wealthy neighborhoods, and fair housing policies.

All housing production in America will be negatively impacted by a haphazard approach to cost-cutting. These proposed cuts would deeply damage housing production, driving up housing prices and making it even less likely that America will address our housing shortage. Millions of Americans, especially the most vulnerable, will pay more for housing due to the wide-reaching and long-term impacts of this short-sighted funding decision.

“Housing delayed is housing denied,” said Jae Garner, Marketing & Communications Director at YIMBY Action. “These proposed cuts could set us back decades in an already crushing shortage. It can take up to a decade to get new homes funded, approved, and built. If these cuts go through, that process will get even longer. Americans need affordable homes right now. Affordable housing can’t wait.”

Newly appointed Secretary of Housing and Urban Development Scott Turner indicated in his confirmation hearing that he would advance pro-housing policies and supported maximizing the current HUD budget to help address America’s housing shortage. Secretary Turner recognizes that zoning difficulties on a local level can hinder developers from building affordable and workforce housing, and has called programs like the Housing Choice Voucher Program an essential component of the federal housing safety net for people in need. Turner agreed that the federal government should share best practices in reducing barriers with localities. He committed to looking at legislation that would develop frameworks and best practices on zoning and land use policies to be used by local municipalities. But without sufficient staff, these ambitious and popular goals will be impossible to achieve.

The scale of budget cuts being considered would be a disaster for our country and are likely illegal. Congress has allocated funding and outlined programs that HUD is legally required to fulfill. Without legislative or budgetary changes through the legislative process, many of the cuts being discussed would not be legal. We ask that Secretary Turner do the valuable and legally required work of the Department of Housing and Urban Development to bring down the cost of housing for all Americans.

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