As the government enters its second week of shutdown and Congress continues to seek a resolution, the Trump administration has issued layoff notices to several key agencies.
According to the Office of Management and Budget (OMB), approximately 442 employees from the U.S. Department of Housing & Urban Development (HUD) were terminated, including 103 from the Office of Public and Indian Housing, 36 from Housing Counseling, 50 from Housing Operations, 114 from Fair Housing and Equal Opportunity, and 30 from Community Planning and Development. The Office of Fair Housing and Equal Opportunity alone has already seen its workforce cut by 45% since President Trump took office, leaving some of the nation's vital housing programs understaffed.
Reduction-in-Force (RIF) notices were issued at several of HUD’s nationwide field offices, including the Atlanta, Baltimore, Boston, Denver, Fort Worth, Miami, New Orleans, and Philadelphia offices, among others.
“This is cruel, dangerous, and disgraceful. President Trump has once again chosen to attack working families and the very public servants who help keep roofs over their heads," said Rep. Maxine Waters of California, the top Democrat on the House Financial Services Committee. "By firing 442 HUD employees, many of whom support housing counseling and community development programs, he is deliberately weakening an agency that millions of Americans depend on."
Axios reports that the government is down 200,000 employees since President Trump took office in January.
Late last week, Russell Vought, Director of the U.S. Office of Management and Budget (OMB), took to social media platform X and stated: "The RIFs have begun."
In addition to HUD, the following government agencies have also been hit with job cuts:
- Health and Human Services Department
- Department of Homeland Security
- Treasury Department
- Education Department
- Environmental Protection Agency
- Energy Department
- Commerce Department
Reps. James R. Walkinshaw of Virginia, Member of the House Oversight and Government Reform Committee, and Robert Garcia of California, the Committee’s Ranking Member, have requested that the U.S. Government Accountability Office (GAO) investigate whether President Trump and OMB Director Vought’s directive ordering agencies to issue RIF notices during the government shutdown violates the Antideficiency Act.
In their letter to GAO Comptroller General Gene Dodaro, the lawmakers condemned OMB’s description of the shutdown as an “opportunity” to fire federal employees, calling the memo “legally unsupportable and unconstitutional.”
“Setting aside the abhorrent description of a GOP government shutdown as an ‘opportunity,’ this OMB memorandum rests on a legally unsupportable premise,” Reps. Walkinshaw and Garcia wrote in their letter. “A lapse in appropriations suspends the availability of funds but does not repeal or nullify statutory mandates. Undefined ‘Presidential priorities’ cannot substitute for statutory direction.”
The letter urged the GAO to determine whether agency compliance with OMB’s directive would constitute a violation of the Antideficiency Act, noting that the Act “does not authorize agencies to incur obligations for the purpose of planning or executing reductions in force during a shutdown.” They emphasized that any agency implementing Trump and Vought’s directive would be breaking federal law and required to report that violation to Congress.
“We appreciate GAO’s continued vigilance in ensuring that federal agencies comply with appropriations law and statutory requirements, particularly during lapses in appropriations when clarity is essential,” closed Reps. Walkinshaw and Garcia in their letter to the GAO.
Also on the chopping block during the government shutdown is the Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund), responsible for administering block grants for affordable housing and community development. Reports indicate that more than 100 staffers that oversee public housing and Indian housing received RIFs, including more than 25 responsible for rental housing inspections.
According to the CDFI's website, "For the duration of the federal government shutdown, limited Community Development Financial Institutions Fund [CDFI Fund] staff and services will be available."
The CDFI Fund serves mission-driven financial institutions that support economically disadvantaged communities. These organizations are encouraged to apply for CDFI Certification and participate in CDFI Fund programs that inject new sources of capital into neighborhoods that lack access to financing.
LaQuanda Sain, Executive Vice President of Servicing at Rocket Mortgage, shared some thoughts on the impact of the shutdown on mortgage holders.
“For the thousands of federal employees who’ve been furloughed or are concerned about a potential job loss, temporary mortgage relief options – including forbearance – may be available," said Sain. "Forbearance can give homeowners breathing room during a difficult time. However, it’s important to understand that interest continues to build while the payments are on hold, which can increase the total amount paid in the long run. For some, refinancing may be a better long-term solution. Homeowners should reach out to their servicer as soon as possible to understand what options may be available. Each situation is unique, and their servicer can walk them through what programs exist and help decide the best path forward. Keeping in close contact with the servicer can help homeowners stay informed and in control during a period of uncertainty. Rocket Mortgage understands how stressful this moment can feel, and we’re always here to help homeowners navigate it with confidence and care.”
