Local Housing Challenges

The Department of Government Efficiency (DOGE)-directed cancellation of federal affordable housing grants for mentions of “DEI-related language” in 2025 and a potential major overhaul of federal funding allocations for low-income housing could lead to substantial local housing challenges. DOGE-driven staff cuts and resignations at the Department of Housing and Urban Development (HUD) have greatly restricted the agency’s ability to handle fair housing cases and may leave public housing residents at greater risk of fraud. The Trump administration has also targeted Section 8, the primary avenue for federal housing support, for sizable funding reductions and new eligibility rules. State and local governments are likely unable to pick up the funding slack, given the large role that the federal government has historically played in the affordable housing space. 

As housing and construction costs rise, fewer affordable units are being added to the market. While Congress appears to be pulling back from some of the more extreme cuts proposed by the Trump administration, reduced funding for federal housing could fuel further increases in housing insecurity, affordability, and access among people and families most in need. Planners should be prepared with local land use policies and actions to help alleviate a potentially worsening housing crisis.