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Fair housing ally warns HUD staffing cuts and grant cancellations are disrupting services; committee hears urgency

2520654 · March 5, 2025
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Summary

Nikitra Bailey of the National Fair Housing Alliance told the subcommittee that reported terminations, withheld funding and other actions at HUD are already forcing local fair housing agencies to downsize and could reduce enforcement and assistance to vulnerable households.

Nikitra Bailey, executive vice president of the National Fair Housing Alliance (NFHA), told the Subcommittee on Housing and Insurance that reported actions at the Department of Housing and Urban Development — including staff terminations and grant cancellations cited in committee discussion — are disrupting fair‑housing enforcement and community assistance programs.

Bailey said NFHA represents more than 200 local nonprofit fair housing agencies and that many rely heavily or entirely on HUD funding through programs such as the Fair Housing Initiatives Program (FHIP) and other federal grants. She testified that some local agencies had already begun winding down, laying off staff and canceling services because of sudden cancellation notices or uncertainty about funding. "This came in the cover of dark without any notice so no one could prepare," Bailey said, adding that the programs help address redlining, appraisal bias and assist survivors of domestic violence in finding safe housing.

Representative Maxine Waters, ranking member of the full Financial Services Committee, used her opening remarks to criticize recent administration actions and to allege that grant cancellations and other personnel moves had damaged HUD programs; Waters asked for immediate hearings with HUD leadership. Waters' remarks included attribution of several highly contested claims (including references to an entity she labeled "Doge" and assertions about access to grantee data); those claims were made in Waters' statement to the committee and are reported here as her remarks.

Why it matters: witnesses and members said interruptions to HUD grant streams and the loss of experienced HUD staff would reduce the department’s capacity to administer grants, respond to tenant needs and enforce civil rights protections. Bailey told the committee that housing discrimination complaints are at record highs and that local fair housing partners perform time‑sensitive investigative and legal work that cannot be paused without harming clients.

Details cited in testimony: Bailey said the nation sees more than 4,000,000 instances of housing discrimination annually (her organization’s annual reporting figure cited in testimony) and described examples where local FIP grantees intervened to protect homeowners from predatory repair and lending schemes. Members amplified those concerns by noting the number of households that rely on HUD‑administered rental assistance programs; Representative Tlaib (during questioning) cited a figure of about 3,500,000 rental assistance recipients when explaining how staffing cuts could affect people who rely on those programs.

Committee response and next steps: members from both parties asked witnesses and HUD officials to provide documentation and to testify in follow‑up. The committee recorded no formal votes; members sought written materials and scheduled follow‑up questions for the record.