The U.S. Department of Housing and Urban Development will eliminate half of its workforce as part of the Trump administration’s latest effort to reduce federal costs, it announced Thursday.
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The U.S. Department of Housing and Urban Development (HUD) will eliminate half of its workforce as part of the Trump administration’s latest effort to reduce federal costs, Bloomberg reported late Thursday night.
Antonio Gaines, president of HUD’s Union, AFGE National Council 222, told Bloomberg the job cuts will significantly impact employees in offices that enforce civil rights laws, compile housing market data, and fund disaster recovery efforts. The Federal Housing Administration (FHA), which provides mortgage loans, will be exempt.
HUD, which supports housing assistance, fair housing practices and community development, currently employs approximately 9,600 workers, according to its website.
HUD employees were asked to justify hundreds of the agency’s contracts on Monday, using a spreadsheet where workers would indicate whether the contracts involved diversity, equity and inclusion (DEI) components or if the contractor was competent, NPR reported.
The request left workers wondering if they would be the next to be downsized by the Department of Government Efficiency (DOGE).
On Feb. 11, President Donald Trump ordered federal agencies to begin “large-scale reductions in force,” prioritizing the removal of workers who perform duties not explicitly mandated by law, including those involved in DEI programs.
This directive followed Trump’s executive order implementing DOGE’s workforce optimization initiative, which mandates agencies to collaborate with DOGE to reduce federal employment and limit hiring to essential roles. The initiative also evaluates which agency or agency components could be eliminated or merged based on legal necessity.
The HUD layoffs are part of a broader wave of federal restructuring. This week, the Consumer Financial Protection Bureau (CFPB) saw major changes, including the nomination of Jonathan McKernan as director on Tuesday and the shutdown of several bureau’s functions.
Additionally, as part of the cost-cutting measures led by Elon Musk, who has been tasked with overseeing DOGE, $12 billion in real estate loans tied to commercial mortgage bonds are now at risk. Officials aim to downsize the federal government’s real estate involvement by as much as 50 percent, by targeting office spaces with record-high vacancies.
HUD’s new leadership also signals a shift in housing policy.
Scott Turner | Credit: America First Policy Institute
Scott Turner, a former Texas representative and NFL cornerback, was confirmed as HUD secretary last week. Turner has pledged to expand the Opportunity Zones program, easing zoning regulations and fees to boast affordable housing, and impose work requirements on recipients of Section 8 Housing Vouchers.
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