What’s Next for HUD?

According to information and documents obtained by The Associated Press, the Trump administration has halted at least $60 million in funding for affordable housing programs around the country, putting hundreds of projects in jeopardy. The move is part of the Trump administration’s flurry of funding freezes, workforce layoffs, and contract cancellations at the U.S. Department of Housing and Urban Development, which has caused widespread anxiety in the market for affordable housing. 

The $60 million is meant to be distributed to small community development organizations in the form of grants. The money is frequently utilized as initial funding for affordable housing developments, transforming a concept into a viable development and therefore attracting additional public and private investment.

Congress selected three nonprofit organizations to oversee the funds, but HUD announced in letters that it was canceling contracts with two of the organizations, which were supposed to disburse the $60 million jointly. That puts millions of dollars in funding that has already been promised to nonprofit organizations or has yet to be awarded in jeopardy. 

Unfortunately, these changes could affect more than one million disabled Americans. According to a 2023 report released by The United States Government Accountability Office, the 2019 American Housing Survey found the Department of Housing and Urban Development (HUD) offered rental assistance to around 1.8 million households with a disabled member. HUD mainly supported these households through the Housing Choice Voucher, public housing, and Project-Based Rental Assistance programs.

Receiving assistance can be critical. However, this can be a years-long process. Housing vouchers are limited each year. As of 2021, families in need of vouchers have waited on waitlists for over 2.5 years on average nationwide before receiving them.

Justin Smith lives in Minnesota. He receives SSI due to his cerebral palsy. It took ten months for him to finally receive his housing voucher. Initially, he faced multiple denials when requesting accommodations. 

Making matters worse, there is a nationwide shortage of accessible housing. Apartment List conducted a study in February 2020 utilizing data from the American Community Survey and the American Housing Survey. According to the report, only 9% of households with a disabled family member reside in an accessible home. Even though more than 15% of American households have a member who is physically disabled, just 6% of homes are accessible.

The Department of Housing and Urban Development (HUD) provides critical funding for many people, including disabled people. Cutting or stopping funding could mean that even more Americans face housing insecurity. Safe, stable housing should be a reality for everyone. 

Sources:

Acosta, Sonya, and Erik Gartland. “Families Wait Years for Housing Vouchers Due to Inadequate Funding.” Center on Budget and Policy Priorities, Center on Budget and Policy Priorities, 22 July 2021, https://www.cbpp.org/research/housing/families-wait-years-for-housing-vouchers-due-to-inadequate-funding.

Bedayn, Jesse. “Trump Administration Throws Hundreds of Affordable Housing Projects into Limbo after Contract Cuts.” AP News, AP News, 7 Mar. 2025, apnews.com/article/affordable-housing-trump-doge-hud-funding-af0cadf5238f1654d723350cc2e8e0f7. 

“Hud Rental Assistance: Serving Households with Disabilities.” The United States Government Accountability Office, The United States Government Accountability Office, 29 Mar. 2023, http://www.gao.gov/products/gao-23-106339. 

Smith, Justin. “Random updates: Housing, Football & Travels” Justin Smith Writes, WordPress, 3 Dec. 2022, https://justinsmithwrites.com/2022/12/03/random-updates-housing-football-travels/

Warnock, Rob. “How Accessible Is the Housing Market?” Apartment List , Apartment List, 19 February, 2020, http://www.apartmentlist.com/research/how-accessible-is-the-housing-market.

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