President Trump plans major staff cuts to federal disaster recovery office

The Department of Housing and Urban Development faces dramatic staffing cuts that could worsen America's housing crisis, The Washington Post reported, raising serious concerns about the agency's ability to fulfill its core functions. Sharp reductions may disrupt housing markets, decrease affordability, and complicate mortgage transactions at a time when housing costs are already soaring nationwide.

Current and former employees speaking anonymously to the Post revealed growing anxiety as officials from Elon Musk's U.S. DOGE Service, aimed at cutting federal spending, have appeared at department headquarters with plans to reduce HUD's workforce from about 8,300 to just over 4,000 employees.

The Washington Post reports these cuts will affect numerous critical departments, with the Office of Community Planning and Development facing an 84 percent reduction by late May. The Office of Fair Housing and Equal Opportunity, responsible for eliminating housing discrimination, will see staff reduced by nearly 77 percent according to internal memos reviewed by Post journalists. Field offices, particularly in rural areas, may be closed entirely, potentially limiting oversight designed to prevent fraud and waste. Several HUD staffers told the Post that these changes appear to contradict President Trump's campaign promises to make housing more affordable.

According to the Post, the Federal Housing Administration, one of the world's largest mortgage insurers that helps first-time buyers and those with lower credit scores, faces possible cuts of 40 percent. These reductions could send immediate shock waves through mortgage markets and make housing finance riskier for lenders, potentially causing some to withdraw from the market altogether, claims David Dworkin, the president of the National Housing Conference, who spoke with Washington Post reporters.

The Trump administration's plans specifically target the Office of Community Planning and Development, which The New York Times reports is responsible for funding recovery efforts after the country's worst disasters. According to documents obtained by Times journalists, staff in this critical office will be reduced to just 150 workers, down from 936 when Trump took office last month. This office pays to rebuild homes and infrastructure following catastrophic events like Hurricane Helene in North Carolina and Hurricane Milton in Florida, with Times reporting suggesting these cuts could significantly slow the distribution of recovery money to disaster-affected areas.

HUD spokeswoman Kasey Lovett defended the changes to The New York Times, stating the department is carrying out President Trump's broader efforts to restructure and streamline the federal government. In an additional statement to Times reporters, Lovett insisted that disaster recovery efforts remain a top priority and would not be impacted. Meanwhile, the HUD has announced a DOGE task force composed of department employees to suggest ways to maximize budgets, with employees also being asked to flag streamlining opportunities through a new tip line.