03/13/2025
Musk's DOGE Shutters $1B Affordable Housing Program
The Trump administration has moved to terminate a $1 billion program aimed at preserving affordable housing, a decision that could disrupt efforts to maintain tens of thousands of units for low-income Americans.
The move, directed by President Donald Trump and Elon Musk's Department of Government Efficiency (DOGE), is part of broader funding freezes at the U.S. Department of Housing and Urban Development (HUD), according to an internal document reviewed by The Associated Press.
Why It Matters
DOGE has come under scrutiny for the pace, depth, and breadth of its cuts to federal funding under its mission to eliminate waste and fraud.
Trump, responding to such criticism, said he wants Musk's DOGE to use a "scalpel" and not a "hatchet" in its approach to spending cuts.
The Green and Resilient Retrofit Program, passed by Congress in 2022, was designed to provide grants and loans for energy-efficiency improvements in affordable housing units. While officially intended to promote sustainability, the funding was also a crucial mechanism for keeping units affordable.
Participating projects were required to maintain affordability for up to 25 years, and the federal funds often served as a key financial lever to attract additional investment.
Without this support, thousands of affordable units could deteriorate or be lost entirely.
What to Know
The program had already allocated funding to upgrade at least 25,000 housing units nationwide, but HUD has not clarified how it will handle the rollback.
According to an internal HUD document obtained by the AP, the decision to shutter the program came at the direction of DOGE. Two HUD employees, speaking anonymously due to fear of reprisals, confirmed the directive.
The U.S. is experiencing a significant affordable housing crisis, characterized by soaring home prices and escalating rents that outpace income growth. The shortage of affordable housing units further compounds the issue.
This crisis has led to an 18 percent rise in homelessness nationwide, per HUD data, underscoring the urgent need for comprehensive policy interventions to expand affordable housing.
What People Are Saying
Residents and property managers impacted by the funding freeze have expressed deep concern.
The Smith Tower Apartments in Vancouver, Washington—a 170-unit building serving low-income seniors—had been approved for a $10 million grant from the program to help fund a crucial $100 million renovation, including safety measures.
"The potential loss seriously jeopardizes our ability to be able to provide an upgrade to the current systems," said Greg Franks, president of the building's management company. "This work is needed to sustain the livability of this building based on its age, and to keep it viable for another 60 years."
"If we are losing the homes that are currently affordable and available to households, then we're losing ground on the crisis," Sarah Saadian, vice president of public policy at the National Low Income Housing Coalition, said in October. "It's sort of like having a boat with a hole at the bottom."
What's Next
With HUD silent on the future of the program, affordable housing developers and property managers are scrambling for contingency plans. Some projects that had already been approved may still receive funding, but many remain in limbo.
Across 42 states, the District of Columbia and Puerto Rico, hundreds of affordable housing projects now face uncertainty. Without the necessary funding, many buildings could fall into disrepair, further exacerbating the nation's housing crisis.
