In our ongoing effort to keep you informed about the Trump Administration’s policy changes affecting the housing market, we present this analysis of recent executive orders and policies, along with their potential implications.
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Trump’s Executive Orders
Continuing the Reduction of the Federal Bureaucracy
What Happened:
- On March 14, 2025, President Trump signed the executive order titled “Continuing the Reduction of the Federal Bureaucracy.” This order mandates the elimination or reduction of certain federal entities deemed unnecessary, including the United States Interagency Council on Homelessness (USICH) and the Community Development Financial Institutions Fund (CDFI Fund).
- On March 31, 2025, approximately 75 employees of the Institute of Museum and Library Services (IMLS), another agency targeted by this order, were placed on paid administrative leave and instructed to cease agency operations immediately.
Who’s Impacted:
- Homeless Assistance Programs: Organizations relying on federal coordination through the USICH may face challenges in addressing homelessness effectively.
- Community Development Financial Institutions: Financial entities that provide affordable lending to low-income communities could experience reduced support, affecting their ability to finance affordable housing projects.
- Museums and Libraries: Institutions dependent on IMLS grants may face funding shortfalls, affecting community access to educational and cultural resources.
Why It Matters: The reduction or elimination of these agencies may lead to decreased federal support for programs aimed at combating homelessness and promoting affordable housing. This could result in increased strain on local governments and nonprofits to fill the gap, potentially slowing down efforts to address housing affordability and homelessness. However, supporters argue that streamlining federal housing programs could reduce redundancy, improve funding efficiency, and give states more control over resource allocation.
Additional Rescissions of Harmful Executive Orders and Actions
What Happened: On March 14, 2025, President Trump issued an executive order titled “Additional Rescissions of Harmful Executive Orders and Actions,” which rescinds several prior directives, notably revoking Executive Order 14026, which had increased the minimum wage for federal contractors.
Who’s Impacted:
- Federal Contractors and Workers: Companies engaged in federal contracts and their employees, particularly those in construction and maintenance roles related to housing projects, may be affected by changes in wage requirements.
Why It Matters: Lowering the minimum wage for federal contractors could reduce labor costs for housing-related federal projects. While this might decrease expenses for some projects, it could also impact the livelihoods of workers and potentially affect the quality of work if lower wages lead to reduced worker retention and morale. Conversely, some industry groups argue that lower wage floors can help businesses hire more workers, boost job creation in housing projects, and cut costs for taxpayers.
Restoring Public Service Loan Forgiveness
What Happened:
Who’s Impacted:
- Nonprofit and Public Sector Employees: Individuals working in housing-related nonprofits or public agencies could be affected if their organizations are classified under the new criteria.
Why It Matters: Changes to the PSLF program could deter professionals from working in certain housing-related nonprofits or public agencies, potentially leading to staffing shortages in critical housing assistance programs. This may hinder efforts to provide affordable housing and support services to vulnerable populations. The administration has defended the move, stating that it aims to ensure taxpayer dollars aren’t funding organizations with questionable finances, promoting greater public sector accountability.
Tariffs and Trade Policies
What Happened:
- On April 2, 2025, President Trump has announced an additional universal tariff of 10% on all imported goods, effective April 5, 2025.
- Further tariff increases targeted approximately 60 counties based on their trade deficits with the U.S., including raising tariffs on Chinese imports to an effective date of 54% as of April 9, 2025.
- A 25% tariff on all imported automobiles was implemented on April 3, 2025, with auto parts tariffs expected soon.
Older Developments:
Who’s impacted:
- Homebuilders and Developers: Higher material costs could increase construction expenses.
- Homebuyers: Rising construction costs may be passed on to buyers, affecting affordability.
- Automobile Industry:
- Automakers: Facing higher costs, potentially shifting production domestically to mitigate tariff impacts.
- Consumers: Likely to see significant price hikes on imported vehicles and auto parts.
- Retailers and Consumers: Broad tariffs mean higher prices for imported consumer goods, affecting household budgets and spending behavior.
- Financial Markets: Markets reacted with significant volatility, reflecting investor concerns about broader economic impacts and potential trade disputes.
Why It Matters:
The new tariffs significantly increase costs across housing, autos, and consumer goods, potentially slowing economic growth and raising prices for consumers. The tariff-induced market manipulation resulted in sharp stock decline, highlighted investor fears of escalating trade conflicts and broader economic uncertainty. Supporters argue tariffs protect domestic industries, while critics warn they risk economic instability and higher inflation.
Federal Employees; Hiring, Funding, and Regulatory Freeze
What Happened:
- Federal Workforce Reduction: The executive order on reducing the federal bureaucracy mandates that agencies submit plans for mass layoffs and budget cuts, aiming to streamline operations and reduce waste.
- Hiring and Funding Freeze: A hiring freeze has been implemented across various federal agencies, with exceptions for specific sectors like law enforcement and national security. This freeze affects staffing in agencies such as the Department of Housing and Urban Development (HUD), potentially delaying housing programs and services.
- Regulatory Review: A comprehensive review of federal regulations has been ordered to identify and eliminate those deemed unnecessary or burdensome, which may impact housing policies and programs.
Who’s Impacted:
- Federal Agencies like HUD: May face staffing shortages, delayed program rollouts, and limited capacity to administer housing initiatives.
- Public Sector Employees: Workers in housing-related agencies could be at risk of job loss or face uncertainty about future roles.
- Communities Relying on Housing Programs: May experience service delays or reduced support due to agency downsizing.
Why It Matters:
These measures could slow the implementation of housing programs and delay assistance to vulnerable communities. Critics argue that staffing cuts and budget freezes threaten the effectiveness of critical housing services. Supporters, on the other hand, believe streamlining agencies will reduce waste, increase efficiency, and refocus resources on core government functions.
Consumer Financial Protection Bureau (CFPB)
What Happened:
While no specific executive orders have recently targeted the CFPB, the agency is currently undergoing review as part of a broader federal regulatory overhaul. This review may result in changes to its authority and its role in enforcing housing finance-related consumer protections.
Who’s Impacted:
- Homebuyers and Mortgage Borrowers: May face changes in how consumer protections are enforced in mortgage lending.
- Lenders and Financial Institutions: Could see reduced regulatory burdens and increased flexibility in lending practices.
- Consumer Advocates: Organizations focused on housing finance oversight may face challenges in ensuring accountability.
Why It Matters:
Changes to the CFPB’s authority could shift the balance between consumer protection and lender flexibility. Critics worry this could open the door to riskier lending practices and fewer safeguards for borrowers, while supporters argue it may streamline compliance, promote innovation, and make credit more accessible.
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HUD, FHFA, Fannie Mae and Freddie Mac
What Happened:
- Program Funding: Budgetary constraints resulting from the federal workforce reduction and funding freezes may lead to decreased funding for HUD programs, affecting affordable housing initiatives and community development projects.
- Policy Revisions: The FHFA may revise policies related to mortgage lending and housing finance, potentially altering the availability and terms of home loans.
- Staff Firings: On March 20, 2025, new FHFA Director Bill Pulte fired Freddie Mac CEO Dianna Reid and placed two senior FHFA officials on leave. This came after Pulte fired 14 members from the Fannie Mae and Freddie Mac’s board of directors and appointed himself as chairman of both. However, that self-appointment breaks U.S. Code Title 12 of the Federal Housing Finance Regulatory Reform Act of 2008. These sweeping changes have accelerated efforts to privatize the two mortgage giants.
- Terminating Special Purpose Credit Programs: FHFA officially ended all SPCPs offered by Fannie Mae and Freddie Mac as of April 2, eliminating special loan programs targeting first-time and underserved borrowers. SCPCs provide financing to historically underserved and overlooked borrowers.
- Tenant Protections Removed: Effective April 1, 2025, FHFA Director Bill Pulte rescinded multifamily tenant protections (e.g., 30-day notices for rent increases).
- New HUD Income Limits: HUD updated eligibility thresholds for affordable housing programs effective April 1, 2025, reflecting new median income data.
- Radon Inspection Standards: On March 26, 2025, FHFA reduced requirements for radon inspections on multifamily loans, citing unnecessary costs and delays. While naturally occurring, radon is a radioactive gas that can concentrate indoors, causing adverse health effects such as lung cancer.
- “American Housing Programs for American Citizens”: On March 26, 2025, HUD Secretary Scott Turner announced the FHA removed “non-permanent residents” from accessing FHA-insured mortgages. This includes DACA recipients, asylum seekers, and refugees. “Illegal” immigrants were never eligible for these loans.
- Cancelled DEI “Nonsense” at Fannie and Freddie: On April 4, FHFA Director Bill Pulte cut board diversity and diversity data collection. On April 7, Pulte claimed the cuts already saved $6.4 million.
- Over 100 Fannie Mae Employees Fired: On April 8, FHFA Director Bill Pulte fired about 100 Fannie Mae employees behind a claim of “unethical conduct.”
Who’s Impacted:
- Homebuyers and Mortgage Borrowers: Privatizing Fannie Mae and Freddie Mac could lead to higher mortgage rates or stricter lending criteria.
- Renters and Tenants: Reduced protections (like shortened notice periods) could increase instability and displacement risks.
- First-Time Homebuyers: Ending Special Purpose Credit Programs (SPCPs) limits affordable homeownership options for historically underserved groups.
- Non-Permanent Residents: Exclusion from FHA loans reduces homeownership access for DACA recipients, refugees, and other non-permanent residents.
- HUD Employees and Beneficiaries: Staffing cuts and office closures may disrupt HUD’s housing assistance and community support programs nationwide.
- Diversity, Equity, and Inclusion: Organizational DEI movements — meant to provide a fair playing field for all demographics to counteract historically racist and sexist business practices — have been slashed by the Trump administration.
Why It Matters:
These moves are steps in the administration’s effort to privatize the government-sponsored enterprises (GSEs) of Fannie and Freddie, which back about half of U.S. mortgages. Among other things, privatizing the GSEs would likely usher in the potential for riskier loans and higher interest rates, alongside shareholder profiteering. Supporters see it as a way to cut taxpayer exposure, boost competition, and modernize mortgage finance.
The bottom line
These executive actions reflect a shift in federal policy that could have significant implications for the housing market.
Stakeholders, including housing advocates, developers, and policymakers, should closely monitor these changes to assess their impact on housing affordability, availability, and quality.
Proactive engagement and adaptation to these policy shifts will be crucial in navigating the evolving landscape of housing in the United States.
Note: The analysis above is based on information available as of April 10, 2025. For the most current updates, please refer to official government publications and trusted, independent news sources.
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Written by: Editorial Staff