By David Gonzalez Rice, NLIHC Senior Vice President of Public Policy
The U.S. Government Accountability Office (GAO) released a report, “Department of Housing and Urban Development: 2025 Workforce and Spending Changes,” examining how workforce reductions and cuts or delays in grant and contract spending at the U.S. Department of Housing and Urban Development (HUD) affected the agency’s operations. The report documents disruptions reported by housing organizations and local agencies that rely on HUD to administer affordable housing and fair housing programs mandated by Congress.
GAO Report Summary
The report found that HUD’s workforce decreased by 29% between December 2024 and December 2025, falling from approximately 8,800 to 6,300 employees. More than half the employees who left had worked at HUD for 10 years or more, many with more than 20 years of service. At the same time, more than half of HUD’s grant programs made no new awards in fiscal year 2025, and the agency terminated 144 of its 675 active contracts in 2025, representing approximately $367 million mostly for professional or IT services.
To understand the effects of these changes, GAO interviewed representatives of 20 local and national housing organizations, including public housing agencies, fair housing organizations, property managers participating in the Section 8 Project-Based Rental Assistance program, and national housing groups. NLIHC, along with several of its members and State Partners, provided interview responses to GAO investigators. The final report reflects the insights and experiences of affordable housing providers and advocates.
Impacts on Communities
Stakeholders described widespread confusion and operational challenges following the spending changes and loss of experienced HUD staff. Nearly all reported that established points of contact had departed, often without warning or a transition plan. Organizations said that finding reliable guidance had become more difficult, while new agency contacts sometimes lacked the institutional knowledge needed to resolve complex program questions. Stakeholders also reported canceled meetings, inconsistent guidance, delays in communication, and loss of access to HUD IT systems, such as grant portals.
The report highlighted consequences for fair housing activities and affordable housing operations. Fair housing organizations reported reducing services or staffing during funding disruptions, while housing providers described delays in rental assistance payments, assistance with HUD technology platforms, and physical inspections of HUD-assisted properties. These disruptions undermined organizations’ ability to carry out activities authorized and funded by Congress.
Non-responsive HUD
GAO noted that HUD did not respond to requests for information throughout the audit. Notably, HUD did not provide requested information about the efficiency initiatives it has reportedly undertaken since January 2025, leaving Congress and the public unable to assess HUD’s claims about the effects or potential of these initiatives.
Read the GAO Report.