HUD to lay off 400 employees amid government shutdown

Washington, DC - July 26, 2021: Exterior of the Department of Housing and Urban Development building located in downtown Washington, DC
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The Trump Administration's threat to layoff federal workers if the government shutdown continued came to fruition Friday, including some housing cuts.

Employees from seven departments were laid off, 442 from HUD, according to a court filing Atlanta News First obtained. In total, 4,200 employees received notices, a little over 10% of which came from the Housing and Urban Development Department.

"HUD is implementing a reduction in force as part of its ongoing efforts to realign its activities with its core statutory mission," a HUD spokesperson said in a statement sent to National Mortgage News Wednesday. "It is HUD's priority to serve the American people effectively."

The employees, stationed in Atlanta, Baltimore, Boston, Denver, Philadelphia and more areas, were told their last day will be Dec. 9, according to BisNow.

HUD plans to lay off 114 employees from the Fair Housing staff, 103 from the Public and Indian Housing office, 86 in the Office of Housing and 30 in the Office of Community Planning and Development, Bloomberg reported.

The federal workforce has been plummeting since Donald Trump took office, and HUD has not been an exception. Since January, roughly 2,300 employers, 23% of the agency's staff, have voluntarily left, according to earlier Bloomberg reports.

Friday marked a second wave of layoffs, with the administration gutting the Community Development Financial Institutions Fund. The Department of Treasury saw the most notices Friday with more than 1,400, followed by the Department of Health and Human Resources, Department of Education and HUD, the court filing showed.

The shutdown, now more than two weeks old, has halted some federal support provided to lenders, and weakening HUD may cause additional complications in the industry.

"We are in the process of reviewing the notice, assessing the impact and magnitude of the agency's decision, while acquiring legal guidance from the National office," Antonio Gaines, president of the American Federation of Government Employees Council 222, representing employees of HUD, told NPR.

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