In recent weeks, sweeping Trump Administration changes to federal workforce have sent ripples through federal agencies. HUD is the target of this week’s actions. Three stories—one from Politico, Bloomberg Law, and another from HousingWire—detail how HUD is set to cut nearly 50% of its workforce, while a Politico analysis places these cuts within a broader government-wide drive to reduce bureaucracy. These developments have significant implications for the affordable housing industry, particularly for NAHMA members navigating an evolving regulatory landscape.
According to Bloomberg Law and HousingWire, HUD is preparing to discharge around half of its 9,600 employees. The cuts specifically target roles in civil rights enforcement, housing market data compilation, and disaster recovery—functions critical to maintaining community stability and ensuring equitable housing practices. Notably, the Federal Housing Administration (FHA), which underpins mortgage insurance programs and project-based rental assistance (PBRA), is expected to not receive deep reductions. This move is part of an administration-wide initiative, spearheaded by the Department of Government Efficiency (DOGE), aimed at “shrinking” the federal workforce by eliminating positions deemed nonessential or not mandated by law. The new leadership under HUD Secretary Scott Turner has already signaled intentions to streamline operations and potentially recalibrate the department’s priorities toward core housing policy goals.
The broader federal restructuring outlined by Politico Pro reveals an even sharper focus at HUD. Sources detailed how DOGE has zeroed in on HUD with an aggressive agenda aimed at slashing spending and workforce headcount. According to this article, DOGE aides have initiated regular meetings with HUD officials to scrutinize the agency’s budget and operations, targeting the reported $260 million in cuts and aims to see not only a 50% reduction in overall headcount but also the closing of nearly half of HUD’s field offices.
The reporting underscores that while some offices, like FHA, might be insulated from these cuts, other critical areas are under severe threat. HUD Offices, such as Policy Development and Research (PD &R), Community Planning and Development (CPD), and Fair Housing and Equal Opportunity (FHEO), are predicted to experience reductions in staff as drastic as 75%. There are also anticipated major cuts to programs addressing lead hazard control and healthy homes, the Office General Counsel (OGC), and Office of Public and Indian Housing (PIH). This expansion of DOGE’s actions at HUD signals a profound reshaping of housing policy, with immediate impacts and long-term implications for affordable housing initiatives
Beyond HUD, the broader federal government apparatus is undergoing dramatic restructuring. Politico reports that agencies ranging from the Energy Department to the Forest Service are experiencing mass layoffs, with federal workers, particularly those in probationary status, being targeted for early dismissal. The administration’s “Fork in the Road” buyout program, although initially intended to encourage voluntary departures, has not met its ambitious targets and is now being supplanted by more forceful measures. This strategy, championed by figures such as President Trump, Elon Musk, and Vice President JD Vance, reflects a radical rethinking of the role and size of federal government in today’s economy. While these efforts are framed as necessary cost-saving measures, they have sparked lawsuits and widespread debate about the long-term impacts on government services and accountability.