Amid shutdown, NC housing advocates sound alarm over mass layoffs, cuts
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- Federal shutdown and HUD layoffs threaten counseling, foreclosure and rental aid.
- Cuts risk $57.5M in appropriations and services for as many as 50,000 families.
- Local nonprofits face funding gaps, halted grants and eviction risks for tenants.
Funding cuts and mass layoffs at the U.S. Department of Housing and Urban Development could jeopardize critical aid for low- and moderate-income people and families across North Carolina, housing advocates say.
Low-income renters, seniors, people with disabilities, and nonprofit housing providers will be hit the hardest — especially those relying on Section 8 housing vouchers, public housing, and homelessness grants, they say. The broader impact is already rippling through the real estate market.
As the shutdown drags into its fifth week, the impact is especially acute in urban centers like Raleigh, Durham and Charlotte.
Here’s what we know:
What’s happened: On Oct. 10, just 10 days into the shutdown, the Trump administration began the largest, federal-workforce reduction in decades, targeting over 4,000 federal workers across eight agencies.
It includes more than 440 employees at HUD. Among them: the entire Office of Housing Counseling, effectively gutting the program.
Why this matters: With no deal in sight, local advocates are trying to protect vulnerable residents from the fallout.
- A federal judge’s decision to indefinitely block the move has offered some relief.
But with nearly a quarter of HUD’s workforce already gone and funding frozen, advocates say critical programs are coming under “direct threat” statewide. They include:
- Rental assistance
- First-time homebuyer programs
- Foreclosure prevention
- Housing counseling
What’s on the line: The NC Housing Coalition (NCHC) estimates these layoffs would represent $110,000 in unreimbursed housing counseling services in its network alone, supporting 20 housing agencies across the state.
- It could also prevent an estimated $57.5 million in appropriated funds from serving as many as 50,000 families statewide.
- That includes foreclosure prevention work happening in Western North Carolina in the aftermath of Hurricane Helene.
What they’re saying: “Cutting these critical offices, funds, and services will result in increased housing instability and homelessness,” Durham-based NCHC said in an Oct. 23 letter to the state’s congressional delegation.
- They want state leaders to ensure that these layoffs are not carried out; that existing 2024 grant funding is paid out for work already completed; and that appropriated funds for 2025 are “allocated for their intended purpose.”
Triangle housing nonprofits, like DHIC Inc, are also raising concerns.
The Raleigh-based, affordable-housing developer manages over 2,800 rental units across Wake, Durham and Orange counties. It’s also helped over 5,000 families with homeownership counseling across the Triangle region.
- “We don’t have enough for the 2026 budget. For developments in our pipeline, the concern is: are there going to be resources available for gap funding?” said Yolanda Winstead, DHIC’s president.
Funding shortfalls and delays could also impact their ability to operate rental properties, triggering evictions and financial strain, she said. (Roughly 25% of their 4,200 residents use housing choice vouchers.)
- “Obviously we don’t want to have to evict people, but we’ll be faced with the decision,” Winstead said.
What happens next: Congress remains deadlocked over a stopgap funding bill.
On Thursday, Oct. 30, Sen. Thom Tillis (R-NC) continued to blame Democrats for the shutdown, though he did not directly address cuts to HUD.
“It is impossible to negotiate in good faith when one side holds the entire federal government hostage, and political extortion cannot be the new precedent,” he said in a statement.
He called on five Democrats to “start acting bipartisan.”
Democrat U.S. Rep. Deborah Ross (NC-02) said she isn’t budging and is calling on President Trump to “come to the table and negotiate an end.”
This story was originally published November 3, 2025 at 10:14 AM with the headline "Amid shutdown, NC housing advocates sound alarm over mass layoffs, cuts."
