The Trump administration has initiated sweeping staff cuts and office closures at the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA), marking a significant downsizing of the federal government’s housing infrastructure.
At FHFA, which oversees Fannie Mae and Freddie Mac, two divisions were shut down this week, resulting in a reduction of nearly 10% of the workforce. New FHFA Director Bill Pulte also recently fired Freddie Mac CEO Diana Reid, removed most members of the boards at both GSEs, and appointed himself as chair of both. Entire teams, including those from the Research and Statistics Division and the Equal Employment Opportunity office, were placed on administrative leave and escorted from the building.
The agency also dissolved the Division of Public Interest Examination, an office established in 2024 to oversee affordable housing, consumer protection, and diversity initiatives. Although some roles are protected by statute, many staff are expected to lose their jobs. The Office of Minority and Women Inclusion was folded into another department, but its employees were also placed on leave.
Meanwhile, HUD has begun closing its Office of Field Policy and Management, which includes teams overseeing fair housing, labor standards, and lead hazard control. Approximately 150 employees are facing reductions in force. Additional layoffs are expected in the coming weeks, potentially eliminating HUD’s local staffing in up to 34 states, which could hinder its ability to underwrite mortgages and manage key housing programs.
The cuts follow President Trump’s directive to Cabinet members to reduce agency staffing. The Department of Government Efficiency (DOGE), led by Elon Musk, is tasked with overseeing and enforcing these reductions. If agency heads do not meet the expectations, DOGE is positioned to carry out the cuts directly.
While HUD leadership has emphasized efforts to retain top talent and institutional knowledge, many within the agency remain uncertain about the future.
Congressional Democrats have voiced strong opposition to the downsizing, warning of potential setbacks to housing development, disaster recovery, and community support initiatives. They argue the cuts threaten the core functions of HUD and FHFA and could delay or halt vital services across the country.
As both agencies move forward with reductions, the full impact on housing policy and federal support systems remains to be seen. The restructuring efforts reflect a broader push by the Trump administration to consolidate power and reduce federal capacity across multiple agencies.
