Washington, D.C. – The White House yesterday directed all federal departments and agencies, including HUD, to freeze all federal financial assistance. This extreme order could prevent states and communities, nonprofit organizations, and low-income families from receiving the critical resources needed to address our nation’s most pressing affordable housing and homelessness challenges.
A memorandum released by the Office of Management and Budget (OMB) on January 27 directs all federal departments and agencies to temporarily freeze all federal financial assistance programs and supporting activities. The order applies to all congressionally approved federal grants and loans and excludes all assistance received directly by individuals. The freeze goes into effect on January 28, 2025, at 5 pm. While the memorandum suggests that the freeze is temporary, it is unclear when and whether the Trump administration will release these funds.
“Even a short pause in funding could cause significant harm to low-income families and their communities,” said NLIHC Interim President and CEO Renee Willis. “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.”
When it goes into effect, the wide-ranging order could be used to deny states and communities key federal resources used to: provide rental assistance to help low-income households afford their homes; build and preserve affordable rental housing for low-income households; operate and maintain public housing and homes for older adults and people with disabilities; address and prevent homelessness, which has reached its highest level on record; revitalize neighborhoods, promote economic development, and improve community facilities, including infrastructure and services in low-income communities; investigate and enforce fair housing and civil rights laws; rebuild housing and infrastructure after major disasters and mitigate future harm; ensure low-income households have access to heat in winter; and provide downpayment assistance to new homebuyers and help current homeowners make critical repairs.
Impacted HUD programs include the following: Section 8 Housing Choice Vouchers; Project-Based Rental Assistance; Homeless Assistance Grants; Public Housing Operating and Capital Funds; HOME Investment Partnerships Program; Community Development Block Grants; Section 811 Housing for Persons with Disabilities; Section 202 Housing for the Elderly; Housing for Persons with AIDS; Fair Housing; Housing Counseling; Eviction Prevention Grants; the national Housing Trust Fund; Tribal housing programs; and many others.
While federal funds are frozen, each federal department and agency is required to complete a comprehensive analysis of how each program is impacted by President Trump’s recent executive orders. If implemented, these executive orders would worsen America’s affordable housing and homelessness crisis by undermining efforts to repair racial and social inequities, weakening HUD’s ability to administer and oversee federal housing investments, putting marginalized people at greater risk of harassment, discrimination, housing insecurity and homelessness, undermining state and local efforts to address housing and homelessness, and harming people at their moments of greatest need.