Federal Frenzy Puts Public Housing Funding and Nonprofit Grants in Question
The Trump Administration’s Move to Re-Examine Federal Funding
The Trump administration’s move to re-examine federal funding for hundreds of programs for evidence of what it calls “Marxist equity” would potentially have a devastating effect on New York City — notably the nation’s biggest public housing authority’s ability to provide homes for its 520,000 residents.
Confusion and Pushback Ensue
On Monday, the White House Office of Management and Budget released a list of programs for which it was pausing funding as it determines whether the programs support President Donald Trump’s so-called “anti-woke” agenda. Confusion and pushback quickly ensued. On Tuesday, a judge stayed the pause until early next week. The following day, OMB rescinded the memo calling for the funding freeze.
Programs at Risk
The freeze jeopardizes about $3 trillion in federal grants to states. Programs at risk include funding for roads, transportation, public housing, anti-gun violence initiatives, disaster relief, and assistance for rent, childcare, and food. Included on that list was the U.S. Department of Housing & Urban Development funding that pays for operating expenses of the New York City Housing Authority and its counterparts across the country, as well as HUD funds that pay for building upgrades under its capital spending program.
NYCHA’s Vulnerability
NYCHA relies heavily on this funding, with 70% of its 2025 operational budget coming from federal dollars and 40% of its budget for capital repair projects coming from HUD. Last year, federal support amounted to $1.5 billion in operational funds and $731 million in capital funds. NYCHA has struggled for years to confront deteriorating conditions of its portfolio as federal funding has dwindled.
Section 8 Housing Choice Vouchers
Also on the OMB list targeted for re-examination is a rental subsidy for lower-income tenants, known as Section 8 Housing Choice vouchers. NYCHA received $2.1 billion in Section 8 funds for landlord payments and program administration last year.
NYCHA’s Response
So far, NYCHA officials haven’t publicly addressed this potential disaster. During the authority’s monthly board meeting Wednesday, Chairman Jamie Rubin and CEO Lisa Bova-Hiatt made no mention of the OMB’s memo and its potential effect on NYCHA’s tenants. Responding to THE CITY’s questions about what NYCHA is doing to analyze and address the memo, Michael Horgan, a spokesperson for the authority, said on Wednesday that it “is working with its city, state, and federal partners to understand the potential impact of the Federal OMB directive. Resident safety, security, and continuity of services remain NYCHA’s priority.”
Environmental Groups Affected
Local environmental groups that had been awarded federal grant funding have been caught in the lurch. One of Trump’s executive orders directs agencies to “immediately pause disbursement of funds appropriated” through the IRA. Four community-based groups — RISE Rockaway, Bronx River Alliance, El Puente, and WE ACT for Environmental Justice — recently won a collective $18 million in Community Change grants, issued through the Environmental Protection Agency with Inflation Reduction Act funding.
Conclusion
The Trump administration’s move to re-examine federal funding for hundreds of programs has put public housing funding and nonprofit grants in question. The potential effects on New York City’s public housing authority and environmental groups are devastating. It is crucial that the administration and Congress work together to ensure that these programs continue to receive the funding they need to support the most vulnerable members of our society.
FAQs
Q: What is the Trump administration’s motivation for re-examining federal funding for hundreds of programs?
A: The administration claims that it is looking for evidence of “Marxist equity” in these programs.
Q: Which programs are at risk of being cut off?
A: Programs at risk include funding for roads, transportation, public housing, anti-gun violence initiatives, disaster relief, and assistance for rent, childcare, and food.
Q: How will this affect New York City’s public housing authority?
A: NYCHA relies heavily on federal funding, with 70% of its operational budget coming from federal dollars. A funding cutoff could have devastating effects on the authority’s ability to provide homes for its 520,000 residents.
Q: What is the status of the funding freeze?
A: A judge stayed the pause until early next week, and OMB rescinded the memo calling for the funding freeze. However, Trump officials have made clear that the reexamination of these programs will continue unabated.
