Frozen Funding: Affordable Housing Projects in Limbo

The Trump administration has paused $60 million for affordable housing, impacting numerous projects. The decision affects two out of three nonprofit distributors, threatening job losses and project viability. Uncertainty looms over funding continuation or cancellation, impacting potential housing development and community welfare nationwide.

The Trump administration has halted $60 million in funds designated for affordable housing, causing hundreds of projects to be put on hold, according to documents obtained by The Associated Press. The freeze is part of broader measures affecting the affordable housing sector, including staffing reductions and contract terminations at the Department of Housing and Urban Development (HUD).

Designed to aid small nonprofits with housing projects, the funding is now stalled, with Congress appointing three nonprofits to manage the grants. However, HUD has recently cancelled contracts with two organizations responsible for distributing these funds, leaving many projects and local jobs in jeopardy.

HUD claims the funding program will continue, albeit under a restructuring process. Yet, the lack of clarity over funding timelines has disrupted plans for many nonprofit organizations, who are now scrambling to secure investments and maintain confidence in their ongoing housing initiatives.

(With inputs from agencies.)