Trump's war on ‘wokeness’ could impact housing and real estate
All federal agencies that offer financial assistance programs — including HUD — have been ordered to share detailed information on how their dollars are spent.
Editor's note: On Jan. 29, the day after this story was originally published, the White House rescinded the controversial order described below.
The Trump administration appears to be keeping its promise to cut federal spending. On Tuesday, the White House's Office of Management and Budget (OMB) ordered the heads of federal agencies to temporarily "pause" grant funding and resources, which could have a sweeping impact on programs and services that rely on federal dollars.
It's unclear how housing-related programs could ultimately be impacted and for how long, but some reporting suggests that dozens of HUD programs — including the Section 8 housing choice voucher program — are being targeted by the administration and OMB for review.
How long does the 'pause' last? A memorandum issued Jan. 27 stated that the pause would go into effect on the evening of Jan. 28, and all federal agencies are being directed to submit detailed information on their financial assistance programs by Feb. 10 for the OMB to review.
However, after a chaotic day of reaction to the order, a judge ruled that it would not go into effect until Monday, Feb. 3. By Jan. 29, however, the White House had rescinded the order.
The purpose of the pause, according to the Jan. 27 memo, is to create a "stronger and safer America." But the language in the document — including references to the "weaponization of government" and the use of tax dollars for "social engineering policies" such as "wokeness," "Marxist equity" and "transgenderism" — suggests there are political motives as well.
The move has already stirred considerable controversy in Washington and is expected to be the target of legal action from political opposition and state leaders.
Direct assistance is not being targeted: "This is not a blanket pause on federal assistance and grant programs," White House Press Secretary Karoline Leavitt said during a press conference this afternoon, adding that the freeze does not affect Social Security benefits, Medicare, food stamps (SNAP), welfare benefits and other "assistance that is going directly to individuals."
Instead, the temporary pause is intended to impact "illegal DEI programs" and the "Green New Deal scam," she said to reporters, reiterating the memo's phrasing: "It means no more funding for transgenderism and wokeness across our federal bureaucracy."
What about housing? A spreadsheet obtained by Politico indicates that thousands of federal agencies and programs are under scrutiny. Among them are 100 HUD programs, according to HousingWire, focused on a range of priorities including lead and radon remediation, Fair Housing laws and housing support for Native Americans.
Despite the White House's statement that "individual assistance" is not affected, the Housing Choice Vouchers (Section 8) program is listed in the document, along with other specific initiatives within the Section 8 program for Single Room Occupancy housing. HUD's Community Development Block Grant Program, which helps fund affordable housing developments in typically higher-cost urban areas, is also mentioned, as well as FHA's 203(k) Rehabilitation Mortgage program.
In a notice sent out today, HUD clarified that the FHA's Single Family Title I and Title II mortgage insurance programs, which are utilized by many first-time and low-to-moderate income buyers, will not be subject to the pause.