Trump Targets 100 Hud Programs For Potential Funding Freeze

The Trump administration sent a memo on Tuesday that directs federal agencies to conduct a review of funding for thousands of government programs, including 100 that are administered by the Department of Housing and Urban Development (HUD).

The memo states that all agencies must submit an analysis that includes answers to 14 questions and submit it to the Office of Management and Budget by Feb. 7. The review applies to any agency and program that has funding planned through March 15.

Major programs with HUD include Community Development Block Grants (CDBG), the public housing operating and capital funds, Section 8 housing vouchers, the Choice Neighborhoods program and Project Based Rental Assistance.

There are numerous other programs related to youth homelessness, native Americans, fair housing, lead reduction, veterans housing, people with AIDS and manufactured housing.

Politico was the first to report the news.

“Even a short pause in funding could cause significant harm to low-income families and their communities,” said Low Income Housing Coalition Interim President and CEO Renee Willis in a statement. “The longer the freeze continues, the greater the risk that low-income households receiving federal rental assistance could face eviction, and in the worst cases, homelessness, homeless shelters may be forced to close their doors, and nonprofit organizations may have to lay off staff.”

Programs related to mortgages and loans also made the list. Those include mortgage insurance for rehabilitation projects, manufactured housing and disaster victims.

Notably missing is the Low Income Housing Tax Credit (LIHTC) program, which real estate developers use to help fund projects in exchange for renting a percentage of units at affordable rates.

Funding levels for HUD programs are determined by the budget process between Congress and the presidential administration. Typically the administration submits a budget request, and Congress negotiates on the basis of that request and then sends their agreement to the president for approval. 

Given this, it’s unclear whether the administration has the legal authority to freeze funding for programs it targets in the memo. Many of the programs could present thorny political programs, most notably veterans housing and CDBG, which state and local government heavily rely on.

During Trump’s first term, his budget requests included defunding and shuttering many of the same programs that are targeted in Tuesday’s memo, including CDBG, public housing, rental vouchers and veteran housing.

The current review is part of a broader effort by the Trump administration to shrink the footprint of the federal government. Monday night the administration ordered a freeze on all foreign aid, and personnel at many federal agencies have already been affected.

On Friday, the Trump administration fired more than a dozen inspectors general, including Rae Oliver Davis, who served in that capacity for HUD.

Previous moves by Trump that affect housing include a federal hiring freeze and regulatory freeze.