On January 27, the Trump administration released a memorandum directing all federal departments and agencies, including HUD, to temporarily freeze all federal financial assistance programs and supporting activities. The order applies to all congressionally approved federal grants and loans, and excludes all assistance received directly by individuals. While the memorandum suggests that the freeze is temporary, it is unclear when and whether the Trump administration will release these funds.

The freeze was due to go into effect on January 28, 2025 at 5:00pm, though was temporarily blocked at the 11th hour by a federal judge until Monday, February 3, 2025.

Should it go forward, the wide-ranging order could be used to deny states and communities key federal resources used to ensure our communities thrive, including:

• Rental assistance

• Building and preserving affordable rental homes

• Public housing and homes for older adults and people with disabilities

• Addressing and preventing homelessness

• Revitalizing neighborhoods, promoting economic development, and improving community facilities

• Investigating and enforcing fair housing and civil rights laws

• Rebuilding after major disasters and mitigating future harm

• Access to heat in winter

• Down payment assistance to new homebuyers

The longer the freeze is allowed to continue, the greater the risk that low-income households receiving federal rental assistance could face eviction (and in worst cases homelessness), homeless shelters may be forced to close their doors, and nonprofit organizations may have to lay off staff. This would have a devastating impact on low-income families and communities.