- President Trump’s executive order to freeze federal aid pending review has been temporarily blocked by a federal judge.
- The freeze, which initially threatened various government programs, was clarified to exempt rental assistance for multifamily properties.
- The National Low-Income Housing Coalition (NLIHC) raised concerns that the freeze could affect infrastructure funding and affordable housing projects.
- While rental assistance remains unaffected, the freeze could harm state and local funding, impact housing construction, and potentially lead to service disruptions.
A wave of confusion swept through Washington and state capitals this week as President Trump’s order to freeze all federal grants and aid threatened housing programs, including rental assistance for multifamily properties.
However, after a swift intervention by a federal judge, a temporary reprieve has provided some clarity. According to Bisnow, The White House and the Office of Management and Budget (OMB) have since clarified that rental assistance programs will be exempt from the freeze, offering temporary relief to low-income households that rely on federal support.
The Funding Freeze
The directive issued by the OMB late Monday called for an across-the-board freeze of all federal grants, loans, and assistance while the administration reviewed these programs to ensure alignment with President Trump’s policies.
The freeze’s broad language sent shockwaves across the nation, sparking confusion among state housing agencies and local officials.
The freeze was met with swift action from US District Judge Loren AliKhan, who blocked the order less than an hour before it was set to go into effect. Judge AliKhan, appointed by President Biden, cited the potential for “irreparable harm” and suspended the enforcement of the freeze until February 3, 2025.
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Rental Assistance Unaffected
While the freeze was poised to impact rental assistance programs, including those for multifamily properties, the White House and HUD clarified that these programs would remain operational. HUD confirmed federal rental assistance would continue, despite the broader funding freeze.
Sharon Wilson Géno, President of the National Multifamily Housing Council (NMHC), noted that additional clarifications on the scope of the freeze would be forthcoming. The White House also confirmed that the freeze would not impact essential individual assistance programs, such as Social Security, Medicare, and food stamps.
Potential Disruptions
Although rental assistance programs have been shielded, there are still concerns about the broader impact of the funding freeze. The National Low-Income Housing Coalition (NLIHC) warned infrastructure funding for affordable housing and new construction projects could be delayed, even if direct rental assistance remains intact.
NLIHC Interim President and CEO Renee Willis emphasized that even a short pause in these funding streams could disrupt services for low-income families, potentially leading to evictions, increased homelessness, and closures of homeless shelters.
Local governments, including mayors’ offices, are pushing for clearer guidance on the freeze’s scope, especially regarding real estate and housing-related obligations.
