Federal watchdog answers Dems' call to probe HUD cuts

A federal watchdog will probe specific alleged job cuts at the Department of Housing and Urban Development in response to concerns from Democrats.

The Government Accountability Office, a nonpartisan federal agency, confirmed Tuesday it would investigate purported slashes to HUD's Office of Fair Housing and Equal Opportunity. The office is responsible for responding to fair housing complaints, of which it received an estimated 34,000 in 2023, according to data from the National Fair Housing Alliance. 

Five Democratic senators including Elizabeth Warren, D-Mass., ranking member of the Banking, Housing and Urban Affairs Committee, requested the GAO investigation following media reports of proposed widespread job cuts at the department. 

"Their plans to cut 80% of HUD's fair housing staff would harm families across the country who have experienced housing discrimination," said Warren in a Tuesday release applauding the GAO's move. 

The 80% figure comes from a February Associated Press report which claims a leaked document mulls a staff reduction at HUD's FHEO from 572 employees to 134 workers. Those cuts, along other terminations, would align with the Trump administration's government-wide efforts to slash the federal budget. 

In a statement Wednesday afternoon, a spokesperson for HUD said the department is not confirming staffing numbers "as it is all speculative."

"HUD has not announced any cuts," the statement read. "To be good stewards of taxpayer dollars, HUD is exploring consolidation while ensuring service to the American people remains the priority."

The housing regulator and its secretary, Scott Turner, have publicly touted the department's reshuffling but haven't yet disclosed details about staffing levels. 

Any internal staff reductions appear separate from cuts undertaken by the Trump administration's Department of Government Efficiency. The Elon Musk-led task force claims to have eliminated over 100 vendor contracts at HUD for savings of more than $160 million. 

DOGE continues to update contract terminations at HUD and other agencies on its "Wall of Receipts," and claims HUD is the sixth-ranked department for "most savings." One recent, massive move is an alleged $285 million saved in terminating a contract worth $315 million with South Dakota-based Project Solutions to support HUD's Real Estate Assessment Center. 

The list of DOGE cuts has proven unreliable, as the task force has previously admitted and corrected errors. One alleged DOGE cut at HUD simply lists a $4.2 million savings, with no description of the contractor or work involved. 

In response last week to a National Mortgage News inquiry about other DOGE cuts, HUD responded with a March 12 X post by Turner, in which the secretary dispelled media reports of cuts but touted the agency's cost-saving efforts. The agency, he claimed, wouldn't slow down its mission critical functions nor undertake sweeping office closures. 

"Are HUD-funded programs going to stop?" Turner asked in the video. "The short answer is no, but things are definitely going to look a little bit different."

The secretary's busy first months at HUD include, among other actions, repealing the Affirmatively Furthering Fair Housing Rule, and ending efforts related to diversity, equity and inclusion. 

HUD has endured backlash on other fronts, including a lawsuit from state fair housing groups over suspended grants. A federal judge last week issued a temporary restraining order which required HUD reinstate those Fair Housing Initiatives Program monies. 

In another federal civil suit, a judge Monday ordered federal agencies, including HUD, to reinstate any affected probationary employees they let go. Those workers were among the first targeted by the Trump administration's sweeping changes. It's unclear how many probationary staffers HUD employed or terminated, but it must report those figures to the federal court by April 8, the judge ruled. 

Democrats on the House of Representatives' Committee on Financial Services Tuesday also sent a letter to Turner discouraging HUD from experimenting with blockchain and cryptocurrencies. Propublica first raised the possibility of such actions, which HUD and Turner have denied.