The Department of Government Efficiency just made moves that could upend how millions of Americans access housing assistance. We’re breaking down what actually happened, who gets affected, and what comes next.
What Happened With DOGE and Housing Programs
The Trump administration, working with Elon Musk’s Department of Government Efficiency, terminated over $1 billion in affordable housing contracts and froze billions more in funding. HUD staff faced massive layoffs—some offices lost 84 percent of their workforce. The Doge Affordable Housing Program Termination hit programs that help 9 million people afford rent, fight housing discrimination, and preserve affordable units across 42 states.
DOGE directed HUD to cancel contracts after reviewing nonprofit websites and LinkedIn profiles for diversity and equity language. This wasn’t a performance review based on results or financial audits. Organizations lost funding because their social media mentioned serving underserved communities or advancing housing justice. The Green and Resilient Retrofit Program, which had already allocated funding to upgrade 25,000 housing units, was shuttered entirely.
Staff reductions crippled the offices that distribute tens of billions in federal housing funds. The office administering Housing Choice Vouchers, public housing, and Native American programs lost half its workforce. The homelessness assistance office got hit hardest—losing 84 percent of staff right when communities needed that $3.6 billion in delayed funding. These cuts don’t just slow down paperwork; they determine whether families keep roofs over their heads or end up on the street.
Programs Hit by the Termination
Housing Choice Vouchers help 5 million people pay rent by covering the gap between what they can afford and actual market rates. With HUD staff cut in half, voucher payments face delays that could make landlords stop accepting them. Only 1 in 4 eligible households currently receives rental assistance due to funding limits. Now those already receiving help face new uncertainty about whether their assistance continues uninterrupted.
Project-based rental assistance serves an additional 2 million people through agreements with property owners who rent units at below-market rates. The office overseeing these contracts lost 44 percent of its staff. Properties depending on these agreements need federal payments to stay financially viable and maintain affordability requirements.
Fair Housing Initiatives Program grants fund 78 organizations that investigate discrimination complaints and help survivors of housing-related sexual harassment, veterans needing accessible units, and families facing racial discrimination. A Massachusetts federal court issued a temporary restraining order reinstating these grants after HUD terminated them. Judge Richard G. Stearns found the terminations likely violated both congressional appropriations law and contractual obligations.
Section 4 capacity-building grants flow through national intermediaries to over 1,000 community organizations annually because HUD lacks staffing to manage small grants directly. DOGE canceled at least two of three intermediary contracts, including $30 million from Local Initiatives Support Corporation supporting lead paint remediation, first-time homebuyer programs for teachers, and abandoned building rehabilitation. Enterprise Community Partners lost $32 million in Section 4 funding after organizing year-long training programs for underserved groups applying for grants.
The Green and Resilient Retrofit Program provided grants and loans for energy efficiency improvements in affordable housing. Projects receiving funding had to maintain affordability for up to 25 years, making federal support crucial for attracting additional investment. Without this program, thousands of affordable units could deteriorate or convert to market-rate housing, permanently removing them from the affordable stock.
Who Gets Hurt Most
Right now, 24 million Americans live in low-income households paying over half their income in rent. That forces impossible choices between rent, food, medical care, and other basics. One unexpected expense—a car repair, medical bill, or temporary income loss—can trigger eviction. These families were already one paycheck away from homelessness before the Doge Affordable Housing Program Termination made assistance harder to access.
In January 2024, 770,000 people experienced homelessness nationwide—an all-time high. Research shows rental assistance combined with supportive services is the most effective policy for reducing homelessness. Communities counted on that frozen $3.6 billion to provide rental assistance, shelter operations, outreach workers, and case management services. The funding delay disrupts planning cycles and could force programs to turn away people sleeping in cars, tents, and shelters.
Smith Tower Apartments in Vancouver, Washington, houses 170 low-income seniors and had secured a $10 million grant toward a $100 million renovation addressing safety systems and structural needs. Greg Franks, the building management company president, explained the loss jeopardizes their ability to maintain livability standards and keep the building viable for another 60 years. Seniors living there face uncertainty about whether their home will stay safe and affordable.
Transgender and nonbinary people experience disproportionately high rates of homelessness. HUD announced plans to roll back non-discrimination protections guaranteeing them access to safe shelter and housing assistance. Veterans with disabilities requiring accessible housing also depend on fair housing enforcement that’s now threatened. The office enforcing fair housing laws lost 77 percent of its staff, leaving fewer investigators to handle discrimination complaints.
Legal Questions Around the Terminations
Multiple federal courts ordered the Trump administration to temporarily halt a broader federal funding freeze that HUD attempted in January 2025. The National Fair Housing Alliance successfully obtained a temporary restraining order specifically for Fair Housing Initiatives Program grants. Lisa Rice, NFHA president and CEO, stated the terminations endanger everyday people while empowering wealthy landlords and others to discriminate.
Section 4 presents particular legal complications because federal law requires these awards to be managed by national intermediaries. HUD’s own guidance for Section 4 requires recipients to advance housing justice and support underserved communities. Shaun Donovan, Enterprise Community Partners CEO and former HUD secretary under President Barack Obama, argued the decision violates congressional appropriations language mandating expert intermediaries manage Section 4 funds.
DOGE has no statutory basis and no authority to review spending approved by Congress or defund federal agencies. Yet the group exercised broad powers to cancel funding throughout the executive branch. HUD indicated certain contracts were found not to accomplish HUD’s mission with economy, efficiency, and effectiveness. The agency is currently working with grantees to communicate an appeals process.
What Happens to Projects Already Underway
Mike Essian, vice president at American Community Developers, Inc., warned that projects will fail without support—and these are projects already difficult to finance. Sarah Saadian, vice president of public policy at the National Low Income Housing Coalition, compared the situation to having a boat with a hole at the bottom. Losing homes currently affordable and available to households means losing ground on the crisis.
Communities across 42 states, the District of Columbia, and Puerto Rico now face uncertainty about hundreds of affordable housing projects. Buildings could fall into disrepair, further worsening the nation’s housing crisis. The Doge Affordable Housing Program Termination leaves property managers and affordable housing developers scrambling for contingency plans.
Some projects already approved may still receive funding, but many remain in limbo. Organizations that spent months preparing applications and coordinating community partnerships now face canceled grants with no clear path forward.
What Readers Should Know Going Forward
HUD has not clarified how it will handle the rollback of programs already distributing funds. The uncertainty created by administration policies has led to payment delays affecting landlords’ willingness to accept vouchers. Voucher holders may find it harder to locate homes they can rent if property owners worry about payment reliability.
HUD officials have also discussed policy changes requiring burdensome work requirements for rental assistance recipients. That step would increase administrative costs and expose many children, people with serious health conditions or caretaking responsibilities, and others to severe hardship. Work requirements in other assistance programs have proven costly to administer while providing minimal benefits.
The housing crisis continues growing—homelessness increased 18 percent nationwide according to HUD data. Home prices and rents keep rising faster than income growth. The shortage of affordable housing units compounds the problem. Layoffs on the scale DOGE is seeking will lead to delays and waste, resulting in people and communities getting less help to address urgent needs.
Fair housing organizations operate on the front lines, combating discrimination through enforcement of the Fair Housing Act. Without their efforts, people facing discrimination have nowhere to turn. FHIP grants have been provided for decades under administrations of both parties and are key to the nation’s ability to ensure equal access to housing.
Looking Ahead
Trump stated he wants DOGE to use a “scalpel” rather than a “hatchet” in its approach to spending cuts. The reality on the ground suggests otherwise. Staff cuts exceeding 50 percent in most HUD offices don’t represent surgical precision—they represent wholesale dismantling of the infrastructure that helps Americans access safe, affordable housing.
Communities will bear the consequences of these decisions for years. Research consistently shows that rental assistance sharply reduces housing instability and overcrowding. Cutting the programs and staff that deliver this assistance moves the country backward on housing affordability and homelessness.
Advocacy organizations continue fighting the Doge Affordable Housing Program Termination through legal channels and public pressure campaigns. Court decisions may restore some funding. Appeals processes may reinstate some contracts. But the damage to community planning, organizational capacity, and public trust has already occurred.
The question isn’t whether these cuts will hurt people—they already are. The question is whether policymakers will reverse course before the damage becomes irreversible.