The Impact of Recent Changes in the Trump Administration on the US Housing System
Over the past one hundred days, the Trump administration has implemented various changes that have significantly affected the US housing system. From layoffs to agency dismantling to executive orders, the chaos by design has left no part of the government untouched. Here are some of the key ways these actions have impacted housing in the United States.
Layoffs at HUD and Rollbacks in Fair Housing
One of the most notable effects of the recent changes is the layoffs at the US Department of Housing and Urban Development (HUD). HUD plays a crucial role in addressing housing, homelessness, community development, and disaster recovery. The layoffs and regional office closures at HUD are expected to impact the agency’s ability to manage programs like the Federal Housing Administration (FHA) mortgage underwriting and Community Development Block Grants, which are essential for supporting affordable housing and economic development.
Additionally, President Trump’s recent executive order on “restoring equality” has raised concerns about the future of the Fair Housing Act. The order calls for federal agencies to ignore the disparate impact standard, a key legal principle that has helped fight discrimination in housing and employment. This move could have serious consequences for individuals based on their race, sex, disability, or other protected traits.
Exclusion of Housing from Federal Homelessness Strategy
The dismantling of the US Interagency Council on Homelessness (USICH) by President Trump has removed a critical agency dedicated to preventing and ending homelessness through federal coordination. This action paves the way for the administration’s strategy to address homelessness through privately operated tent cities, at a time when homelessness is at a record high.
Impacts on Community Development Financial Institutions (CDFIs)
Community Development Financial Institutions (CDFIs) play a vital role in supporting affordable housing and community development projects that mainstream financial institutions may overlook. However, tariffs imposed by the Trump administration have added to the challenges faced by CDFIs. The recent order to dismantle the CDFI Fund further complicates the financing of housing construction and preservation, as well as climate solutions.
What to Expect Moving Forward
As we look ahead to the future, it is essential to consider the potential consequences of these changes on the housing system. With the looming threat of climate-fueled disasters and economic uncertainty, the impacts of these actions will become more apparent. Congress must take a stand against these harmful policies and work towards ensuring housing justice and shared prosperity for all.
Despite the challenges posed by the current administration, cities and states must continue to prioritize affordable and climate-resilient housing initiatives. The housing crisis persists, and it is crucial that efforts are made to address the root causes and provide sustainable solutions.
