NLIHC President and CEO Renee M. Willis Statement on the Harmful Impact of a Federal Government Shutdown on the Low Income Housing Community
Oct 01, 2025
Washington, D.C. - "The federal government shutdown has begun, intensifying hardship for the country’s lowest-income and most vulnerable people. While shutdowns have occurred before, this one comes with unusually high uncertainty over its duration, and the impact mass layoffs of federal workers will have on federal housing programs.
Before the shutdown and throughout this year, this administration has implemented ongoing assaults on affordable housing resources, effectively dismantling the core mission of the U.S. Department of Housing and Urban Development (HUD). The Trump administration pursued massive staffing cuts to federal agencies, including a proposal to eliminate 50% of the staff at HUD. While that proposal did not fully materialize, as of April, an estimated 2,300 staffers—roughly 23% of the workforce—had left the agency, including a 70% staffing reduction in HUD’s Office of Fair Housing.
This shutdown comes as HUD faces severe reductions, potentially hampering housing program administration and worsening issues like homelessness and the affordable housing crisis. In the short term, however, people who are living in HUD- or U.S. Department of Agriculture (USDA)-assisted housing, or who rely on HUD or USDA assistance will receive their rent payment on time through November, protecting tenants from eviction. These households also retain their rights regardless of federal funding status. Yet, with HUD staff furloughed and the White House directing agencies to target “non-essential” staff for layoffs, HUD’s capacity to process grants, provide assistance, inspect properties, and oversee core functions will suffer. The threat of mass layoffs risks crippling HUD beyond the shutdown.
Threatening more federal worker layoffs during a shutdown continues a troubling pattern for this White House. Since taking office, the Trump administration has undermined federal programs and services, especially anti-poverty initiatives like rental assistance, public housing, and civil rights enforcement.
Earlier this year, President Trump’s budget requested major cuts and restrictions to rental and homelessness assistance. The administration has worked to weaken Fair Housing Act protections, threaten housing access for immigrants and LGBTQ individuals, and reject research showing that low-barrier housing with supportive services best addresses homelessness. The White House also withheld funding for programs approved by Congress, disrupting the fundamental balance of power between the Executive and Legislative branches of government. These actions are egregious, putting millions at risk of falling further through the housing affordability gap and destabilizing the broader housing economy.
As shutdown negotiations loom, NLIHC will continue to advocate for funding to protect and support the resources that the lowest income and most marginalized households rely on. We will ensure that Congress hears its constituents' need for the White House to respect the balance of power, follow Congress’s will, and stop withholding funds and services intended for the people."
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