The Trump administration’s cuts to fair housing funding have raised serious concerns about the ability to enforce civil rights laws and help people find affordable housing. It will make it harder for Americans to find safe and affordable places to live and may allow even more housing discrimination to go unchecked, according to current and former government employees, fair housing experts, and local organizations. Advocates say the overhaul will ultimately alienate, discourage, and hurt people seeking help.
People often call HUD hotlines to ask about their rights, register a complaint or get help in a crisis. But now they can only do so through an online form, with few exceptions for those with disabilities or who have tech or language barriers. Regional phone lines shut down in March, according to a HUD memo to fair housing staff. The changes were meant to “maximize efficiency and maintain responsiveness through staffing reductions,” the March 10th notice said. But staff members raised concerns that the moves make it harder for people to get help when they need it, including people facing eviction or families without a place to sleep.
More destructive changes are coming. The HUD office that enforces the 1968 Fair Housing Act is expected to be cut by more than 75%. Employees say that will further strain an understaffed office with a hefty case backlog. One employee said that while the Fair Housing Act requires investigations to be completed in 100 days, “we’re lucky if we can meet that goal for 30% of cases.”
“The level of cuts we’ve heard are on the table would effectively end enforcement of the Fair Housing Act in any meaningful sense,” said another HUD fair housing staffer. “The fear within the agency is that the administration’s goal is to gut some of the crowning achievements of the civil rights movement by simply ignoring the laws and refusing to spend money Congress has appropriated to enforce them.”
In late February, HUD and the U.S. DOGE Service abruptly canceled 78 fair housing grants to nonprofits, jeopardizing $30 million in congressionally authorized funds. Four organizations later filed a class-action lawsuit against HUD and DOGE, and in late March, a judge reinstated the funds with a temporary injunction. The Government Accountability Office - an independent watchdog based in the legislative branch - is also investigating the cuts to congressionally earmarked funds. Relief came only after the groups - many of which have small offices and depend on federal grants -faced the prospect of laying people off or closing. Private nonprofits processed 75% of complaints in 2024, and they say that being in communities makes their work to fight discrimination more effective.
“This is evisceration,” said Gail Williams, executive director of Metro Fair Housing Services in Atlanta. “That’s exactly what it is. It’s pretty plain. There’s no cover to it.” When Williams got an email on Feb. 27 saying her organization’s $425,000 enforcement grant was canceled, she knew that would leave 34 pending investigations in limbo. The grant represents 53 percent of the organization’s annual budget. Without it, she could keep the 51-year-old organization open for only three more months. “Most fair housing centers right now are uncertain as to how we will continue,” she said.
Staffers working on fair lending, consumer protection, and other public interest issues at the Federal Housing Finance Agency (FHFA) were also put on administrative leave in March. Agency director Bill Pulte rolled out a string of new directives in recent days, including those paring tenant protections and ending programs that help borrowers lacking the traditional 20% cash down payment required to buy a new home.
In the backdrop, a national housing crisis has made it more difficult for people to find affordable places to live. "Record high housing costs are putting the squeeze on families in every part of this country," said former HUD Secretary Shaun Donovan, who heads Enterprise Community Partners. He said arbitrary cuts to staff and funding "will only serve to destabilize our housing system and drive up costs for both renters and owners." Many staffers and housing experts say the cuts will indeed make it more difficult for the agencies to carry out basic duties and that it will keep local groups from on-the-ground work. "The shelters are overwhelmed. There's not enough affordable housing," Zoe Ann Olson of the Intermountain Fair Housing Council in Boise, Idaho, said. "We're just seeing an extraordinary amount of evictions, like so many that we're getting on a daily basis. It's so disheartening to lose this money."
There are also fears that the lack of guardrails brings broader economic risk. Fair lending experts noted that many of the mortgages that defaulted during the 2008 housing crisis were predatory and disproportionately affected people of color - risks that can be reduced with proper oversight. Minority borrowers are also more likely to be denied home loans and to pay higher interest rates.
