Members alarmed after HUD notice terminated 78 fair-housing grants; acting IG says cancellations under litigation
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Summary
Members told the committee that HUD terminated 78 Fair Housing Initiative Program grants and are planning cuts to the Office of Fair Housing and Equal Opportunity. Acting Inspector General Steven M. Begg said the cancellations are tied to litigation and his office is monitoring the situation and its impact on capacity.
Multiple members of the House Financial Services subcommittee raised alarm after testimony that HUD sent notices on Feb. 27, 2025 terminating 78 contracts under the Fair Housing Initiatives Program and that the Office of Fair Housing and Equal Opportunity (FHEO) faces proposed staffing cuts.
Rep. Maxine Waters, the ranking member of the full committee, said the terminations "severely impacted communities in their long time work to enforce the Fair Housing Act," listing groups the grants helped, including seniors, veterans, survivors of domestic violence, families with children, and underserved rural communities. Waters said Democratic members had sent letters and requested briefings from HUD Secretary Scott Turner and had received no response.
Acting Inspector General Begg told the committee the cancellations "are currently, subject of litigation" and the OIG is monitoring the litigation and its effect on fair-housing enforcement. Begg said the OIG is "communicating with HUD leadership about the status of the planned reductions and voicing our, advocating for those decisions to be carefully considered." He added that the OIG’s reviews of HUD capacity are ongoing.
Several members said they were concerned about proposed staffing reductions in FHEO — testimony cited a possible 77% cut to that office — and asked how HUD would meet statutory enforcement responsibilities if personnel levels fall sharply. Begg said the OIG had not been presented a plan and that a significant cut to enforcement staff would increase capacity strain. "What we would want to see in a plan is how HUD plans to account for that reduced staff," he said.
Why it matters: Participants said the terminated grants and staffing reductions could weaken enforcement of the Fair Housing Act and reduce access to investigations and remedies for people alleging housing discrimination.
Ending: Begg told lawmakers the OIG has not launched an investigation into the mass firings and that it will continue to monitor HUD decisions, litigation and any impacts on program capacity. Members asked for written follow-up and for HUD leadership to explain contract cancellations and staffing plans to the committee.
