A Government Accountability Office report reveals that the Department of Housing and Urban Development lost 29% of its workforce during 2025, dropping to 6,300 employees primarily through DOGE's deferred resignation program. The downsizing caused severe operational bottlenecks, delaying grant disbursements and leaving housing organizations without designated contact administrators for months. While HUD leaders defend the cuts as necessary steps to curb waste and improve efficiency, the watchdog notes it is too early to measure the impact of planned IT modernizations.
Details of HUD workforce reductions
- ▪The Department of Housing and Urban Development lost 29% of its workforce between December 2024 and December 2025, reducing its total staff to approximately 6,300 employees.
- ▪A majority of the Department of Housing and Urban Development employees who left in 2025 did so through the Department of Government Efficiency's deferred resignation program.
- ▪Among the employees departing the Department of Housing and Urban Development during 2025, 41% had more than 20 years of service at the agency.
- ▪The Department of Housing and Urban Development hired approximately 69% fewer employees in 2025 than in 2024 and added 120 employees in 2026 as of October 15, 2026.
Service disruptions and funding delays
- ▪All Fair Housing Initiatives Program grantees and agencies interviewed by the GAO reported being unsure who their HUD grant administrator was or experiencing diminished communication with newly assigned officials.
- ▪A public housing agency reported using reserve funds for salaries and utilities during a three-month lock-out from HUD's subsidy disbursement system caused by staffing shortages.
- ▪The Government Accountability Office reported on October 14, 2026, that workforce cuts at the Department of Housing and Urban Development caused months-long funding delays for public housing groups.
- ▪Housing stakeholder organizations reported to GAO auditors that responses from the Department of Housing and Urban Development that previously took one day could take up to 30 days.
HUD efficiency plans and agency responses
- ▪The Department of Housing and Urban Development proposed efficiency initiatives, including updating IT systems, establishing a unified grants system, and launching a service delivery improvement initiative.
- ▪Department of Housing and Urban Development spokesperson stated the agency is focused on service standards, reducing fair housing case backlogs, and ending waste under President Trump and Secretary Turner.
- ▪The Department of Housing and Urban Development did not respond to Government Accountability Office requests for information regarding the status of its efficiency initiatives, office closures, or workforce numbers.
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