A mixed-income housing project under construction in Durham. (Photo: Greg Childress)
A North Carolina Housing Coalition petition urging the state’s congressional delegation to protect federal housing funds has collected signatures more than 360 individuals and organizations opposed to President Trump’s attempt to pause federal agency grants, loans and other financial assistance programs.
The petition was drafted in response to a Jan. 27 Office of Management and Budget memorandum that purported halt federal funding to many housing and community development programs. A federal judge has issued a temporary restraining order to stop the funding freeze.
The housing coalition was scheduled to deliver the petition to North Carolina’s congressional delegation Thursday.
“We really want to emphasize the importance of federal housing funds and how at risk they are,” Stephanie Watkins-Cruz, director of housing policy at the Housing Coalition, said on the organization’s weekly housing call. “The [Trump] administration, if they do not try to halt the distribution of the previously appropriated funds, we do expect there to be some drastic budget cuts once the continuing resolution ends in March.”
Earlier this month, the Senate confirmed Scott Turner as secretary of the U.S. Department of Housing and Urban Development (HUD), which is responsible for national policy and programs to address the nation’s housing needs.
Housing advocates across the nation are concerned about Turner’s leadership because he supports policies that the advocates believe will increase housing instability. Those policies include, for example, increasing the role of private equity in the rental market and opposing HUD’s efforts to advance racial equity. Turner announced Thursday that he would revoke $4 million worth of diversity, equity and inclusion contacts at HUD. The move is keeping with a Trump directive to stamp out such efforts in the federal government.
In its letter to the North Carolina congressional delegation, the Housing Coalition said a “pause” in funding for housing and community development would be “catastrophic.”
“At a time when housing seems out of reach for a growing number of North Carolinians, and as the Western part of our state recovers from the devastation of Hurricane Helene, now is the time to lean into critical housing and community development programs that allow North Carolinians to rebuild and thrive, rather than cut essential funds and services that will result in increased housing instability and homelessness,” the Housing Coalition said.
The NC Chamber Foundation, NC REALTORS and the N.C. Homebuilders Association recently released a statewide report showing that North Carolina is facing a significant housing inventory gap across all income levels and geographic regions. The report predicts the gap will increase with projected job and population growth. Addressing the gap could generate $489 billion in economic activity and create nearly 2.2 million jobs, the report said.
Last month, Rep. Valerie Foushee, (D-NC-4) called Trump’s action to halt approved federal funding “illegal and unprecedented” and an overreach of power.
“My district is home to leading research institutions and universities, and this sweeping freeze will harm the livelihoods of researchers, federal employees, and students throughout the Triangle region,” Foushee said in a statement. “This extreme order will not only pause countless federally funded research projects, but will also prevent our state from accessing emergency FEMA funds that are needed to help our neighbors in Western North Carolina rebuild and recover from Helene.”
Foushee said Trump’s directive also threatens to withhold essential funding from first responders, schools, infrastructure improvement projects, healthcare centers, small businesses, veterans, seniors and other important projects and agencies.