The Office of Community Planning and Development within the U.S. Department of Housing and Urban Development (HUD) is set to undergo a drastic reduction, slashing the majority of its workforce, according to a report from The New York Times on Thursday.
A leaked internal document revealed that the office, which plays a critical role in disaster recovery, will see its staff shrink from 936 to just 150 employees—a staggering 84% cut—following Donald Trump’s transition to the White House last month.
This office has been instrumental in helping communities rebuild after natural disasters, including the recent hurricanes Helene and Milton in North Carolina and Florida. It also supports FEMA when disasters exceed FEMA’s budget limitations.
Beyond emergency response, the office connects displaced families with resources such as HUD-approved housing counselors and administers Community Development Block Grant Disaster Recovery (CDBG-DR) funds for presidentially declared disaster areas.
In response to the report, a HUD spokesperson stated:
“HUD is implementing President Trump’s broader plan to restructure and streamline the federal government, ensuring it serves the American people at the highest level.”
This statement mirrors recent comments regarding staff reductions at the Federal Housing Administration (FHA).
In recent years, natural disasters have become more frequent and severe, prompting Congress to allocate tens of billions of dollars in CDBG-DR funds for local recovery efforts. These funds, which come with fewer restrictions than other disaster relief programs, have seen a sharp rise since the 1990s, when annual expenditures were just a few hundred million dollars.
Alys Cohen, a senior attorney at the National Consumer Law Center (NCLC), warned that gutting the office could cripple disaster recovery efforts:
“We are experiencing more natural disasters than ever. HUD’s disaster recovery program provides essential long-term assistance for communities, and both state and local governments depend on this funding. Disasters don’t discriminate politically—they hit everywhere, including many Southern states. Without this funding, many communities simply won’t recover.”
Cohen also pointed out that cutting disaster recovery funding could exacerbate the nation’s housing crisis—ironically contradicting a day-one executive order from Trump focused on reducing housing costs.
“Natural disasters worsen the housing supply shortage. If these communities don’t get the support they need, the housing crisis will only become more severe. This is a bipartisan issue.”
The Office of Community Planning and Development does more than disaster response—it also manages homelessness programs, affordable housing initiatives, infrastructure projects, and community development grants. The proposed cuts jeopardize all of these critical functions, raising serious concerns about HUD’s ability to support vulnerable communities moving forward.
Subscribe to our newsletter for the latest financial insights and news.
