A woman collects her belongings before a homeless encampment’s cleanup in San Francisco in 2023. The Trump administration is set to significantly reduce federal staffing in the HUD office that oversees homelessness programs, amidst a rising tide of people experiencing homelessness across the U.S.
Jeff Chiu/AP
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Jeff Chiu/AP
The federal office responsible for funding housing and supportive services for homeless individuals throughout the nation is facing major cuts, a move that advocates claim could exacerbate the existing record-high homelessness.
The Office of Community Planning and Development, part of the Department of Housing and Urban Development, is projected to undergo an 84% reduction in its workforce, as per documents reviewed by NPR. This reduction is the most severe across any office within the agency.
“These cuts are substantial, and the potential repercussions at both local and national levels could be significant,” stated Ann Oliva, a former HUD staff member who is currently CEO of the National Alliance to End Homelessness.
If you have information regarding ongoing changes at HUD, NPR’s Jennifer Ludden can be reached via encrypted communications on Signal at jenniferludden.20.
The same office also provides funding for disaster recovery efforts and programs aimed at helping communities develop affordable housing solutions.
Overall, Trump’s Department of Government Efficiency, referred to as DOGE and overseen by Elon Musk, is looking to cut HUD’s workforce by approximately half.
The Office of Community Planning and Development at HUD allocates more than $3.6 billion in federal funds toward rental assistance, mental health and substance abuse treatment, and outreach efforts aimed at transitioning individuals from living on the streets to secure housing. “It’s the backbone of local communities’ responses to homelessness,” Oliva noted, “regardless of whether they are in blue or red states.”
Severe staffing reductions would lead to layoffs not only for personnel based in Washington, D.C. but also for employees in regional offices nationwide, she mentioned. Consequently, the disbursement of funds to the multitude of local nonprofits providing housing and associated support could be significantly delayed.
“We need to process grants,” remarked one HUD employee, who asked to remain anonymous due to fears of reprisal. They emphasized that looming staff reductions, coupled with pending resignations, represent a “massive concern” that could jeopardize ongoing operations.
Up until now, HUD has not provided detailed responses regarding these concerns.
“HUD is adhering to directives from the administration while working to ensure that the department continues fulfilling its essential functions,” a spokesperson for HUD stated. They emphasized the agency’s “commitment to serve rural, tribal, and urban communities and meet its statutory responsibilities.”
Concerns are mounting regarding the timely distribution of homelessness funding
The Biden administration sanctioned the forthcoming installment of homelessness funding during its final days in office in January. Yet, this funding has yet to be allocated. Advocates speculate that the delay may stem from the transition to a new administration, though there is apprehension it could be indicative of deeper issues.
In late January, the Trump administration issued a memorandum putting a hold on federal loans and grants, which was later rescinded but subsequently paused in court following a legal challenge. A federal judge found that certain funds were still frozen.
A lawsuit contesting the hold revealed that numerous local nonprofits collaborating with federal entities depend heavily on government funding; the loss of such funds could be catastrophic. A recent memo from the National Council of Nonprofits highlighted ongoing difficulties many of these organizations face in accessing funds, “forcing them to halt programs, furlough staff, and reassess multi-year budgets.”
“I’m growing increasingly worried that funding has been paused in a manner that is unlawful,” voiced Peggy Bailey, a former senior advisor at HUD now associated with the Center on Budget and Policy Priorities, a progressive think tank. She pointed out that this funding freeze, combined with proposed staffing reductions, seems to be part of a larger strategy to diminish HUD’s role. Congressional Republicans have suggested substantial budget cuts for the agency, while the conservative agenda highlighted by Trump supporters in Project 2025 advocates for moving specific HUD responsibilities to other agencies, states, or local governments.
Republican lawmakers are pushing for changes to federal homelessness funding allocation
Opposition among Republicans is escalating concerning the current methodologies surrounding federal homelessness funding distribution.
The prevailing bipartisan framework has focused on securing housing for individuals and subsequently providing necessary support for those seeking assistance for substance abuse or mental health issues. Proponents argue that this method has consistently demonstrated its effectiveness in preventing individuals from becoming homeless.
Nevertheless, Republican leaders contend that this approach, often referred to as “Housing First,” has actually exacerbated the homelessness crisis.
Project 2025 calls for abolishing it. The Cicero Institute, a conservative think tank in Texas linked to Trump, has been actively urging states to condition access to federally funded housing on the necessity of substance abuse and mental health treatment. Researchers at the conservative Manhattan Institute have recently recommended shifting homelessness funding to a block-grant initiative, which would provide states with increased autonomy in its allocation.
Regardless of the developments, advocate Ann Oliva emphasized the critical nature of addressing homelessness at this juncture. A record-high number of individuals in the U.S. are grappling with rent and mortgage affordability. She cautioned that this statistic could worsen if the office overseeing homelessness prevention is effectively dismantled.
“Construction might halt on affordable housing projects currently underway,” she noted. “Ultimately, I fear we will witness an escalation in the rate at which individuals are falling into homelessness, surpassing the disturbing trends we’ve seen over the past few years.”
