TOP STORIES

USDA will propose closing local offices, reducing and relocating staff, report says

Office of Management and Budget documents show the administration plans to suggest closing USDA local offices and consolidating staff into “state committees” covering Rural Development, the Farm Service Agency, and the National Resources Conservation Service, Government Executive reported on April 15. The publication, which reviewed OMB’s “passback” for the FY26 budget proposal, did not provide specifics but reported that OMB’s documents assume cuts in staff, offices, and program funding. The administration can still make changes before submitting its budget request to Congress, and Congress will then decide what dollar amounts and policy provisions to include in its final appropriations.

Politico recently reported that about 30,000 of USDA’s 100,000 employees will be removed through buyouts and reductions in force. Government Executive has also reported that 16,000 USDA staffers have accepted the government’s two deferred resignation offers. Remaining staff will be relocated from Washington, DC to three hubs in other, not yet identified, parts of the country, Government Executive wrote on April 7, anticipating about 9,000 jobs will be eliminated. Some field staff will also be relocated to the hubs, it reported, and parts of the department will be reorganized. Government Executive offers a regularly updated “RIF watch” page summarizing information about layoffs at many federal agencies and another page about firings of probationary employees.

Court proceedings continue in two cases challenging the legality of the administration’s large-scale firings of probationary employees. In one of them, the Supreme Court recently lifted a lower court’s order to reinstate thousands of workers, but that did not end the case, which is now pending in an appeals court.

Congress agrees on framework for tax and spending cuts

The House (on April 10) and the Senate (on April 5) passed a resolution setting parameters for a budget reconciliation package that will reduce federal spending and extend tax cuts. An earlier House version included deeper spending cuts, but the House supporters of that plan agreed to vote for the Senate’s version after Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-LA) made a public commitment to increase the savings achieved through the budget reconciliation process. Now that the two chambers have agreed on the topline figures, their committees will draft pieces of a final budget reconciliation bill with specific provisions – tax cuts and program changes – to reach those figures. The spending levels established by the just-passed resolution are likely to require cuts to Medicaid and SNAP. The final bill will not set appropriations for any particular fiscal year, but will establish dollar limits for future appropriations.

Administration budget request possible this month

The Trump administration’s budget proposal for FY26 is expected to be released in May. A “skinny budget,” without details, may be issued in April. House Appropriations Committee Chair Tom Cole (R-OK) has launched his committee’s FY26 work and announced the committee will accept House members’ requests for earmarks, known as Community Project Funding. A similar announcement from Senate Appropriations Committee Chair Susan Collins (R-ME) and Vice Chair Patty Murray (D-WA) also permits earmarks, calling them Congressionally Directed Spending.

Trump suggests some undocumented workers could get legal status

In comments during a Cabinet meeting on April 10, President Trump referred to a possible process for legalizing undocumented workers, including farmworkers. News reports indicate he suggested that employers could recommend specific people for legalization, who would continue to work in the U.S. briefly, then leave the country and return with legal status.

RuralSTAT

USDA’s Economic Research Service identified 453 High Farming Concentration Counties in 2025. This classification indicates that these counties have a high share of earnings or jobs in farming or agriculture industries. Over 90 percent of High Farming counties are located outside of metropolitan areas. Source: HAC tabulations of USDA ERS County Typology Codes.

OPPORTUNITIES

Deadline extended to April 18 for OneRural 2025 Technical Assistance

HAC is now accepting applications for OneRural Technical Assistance Services, offering customized support to rural nonprofits, Tribal housing entities, and local governments. This program helps organizations strengthen their housing and community development efforts through expert guidance and capacity building. Applications are open through April 18. Learn more and apply at OneRural 2025 – Housing Assistance Council.

CAPITOL HILL

Rural Housing Service Reform Act and other housing bills reintroduced

The RHS Reform Act of 2025, introduced as S. 1260 by Senators Tina Smith (D-MN) and Mike Rounds (R-SD) with several cosponsors, offers a slate of commonsense modernizations to the rural housing programs at USDA. HAC has endorsed the bill.

The Affordable Housing Credit Improvement Act, introduced by Rep. Darin LaHood (R-IL) and Rep. Suzan DelBene (D-WA) with several cosponsors, expands and strengthens the Low-Income Housing Tax Credit. HAC supports the bill.

The Neighborhood Homes Investment Act was introduced by Rep. Mike Kelly (R-PA) and Rep. John Larson (D-CT) with several cosponsors. It is supported by HAC and would create a tax credit for the production and preservation of homeownership housing in low-income areas.

REGULATIONS AND FEDERAL AGENCIES

Turner emphasizes restrictions on aid for undocumented residents and sanctuary cities

Secretary Scott Turner issued a public letter to HUD grantees and stakeholders reminding them that HUD funds cannot be used to provide “certain federal public benefits” to undocumented residents. Turner posted the letter on X with a comment that seemed to indicate HUD would also withhold funds from organizations that assist people without legal status, even if they do not use federal monies to do so: “I want to make it crystal clear – no taxpayer dollars will be given to organizations that support, house, shelter, or provide care to illegal aliens who broke the law.” Undocumented residents are legally eligible for some HUD and USDA housing aid, and “mixed status” families that include both legal residents and undocumented members are eligible for prorated housing assistance, as explained here by the National Housing Law Project.

HUD may move headquarters out of DC

HUD hopes to move out of its headquarters building in Washington, DC, according to Bloomberg News, which said HUD might relocate within the DC metro area or elsewhere in the country.

Technical assistance grants reinstated

HUD has restored at least some of the technical assistance contracts it cancelled in February. Enterprise Community Partners and the Local Initiatives Support Corporation issued press releases announcing their Section 4 contracts were reinstated. At least six other organizations had lost contracts from HUD’s Community Compass program but their current status has not been reported.

Judge renews ruling on Greenhouse Gas Reduction Fund

On April 15 a federal judge extended her previous freeze on EPA’s termination of grants to intermediaries under the Greenhouse Gas Reduction Fund program. This preliminary injunction applies to the three organizations that brought suit: Climate United Fund, Coalition for Green Capital, and Power Forward Communities, all of which were awarded grants from the GGRF’s National Clean Investment Fund. The injunction will last indefinitely while the court proceedings continue.

USDA announces, then retracts, pause on rental production and preservation funding

On April 7, USDA’s multifamily housing office informed funding recipients by email that it was “currently paused on executing obligations and issuing Conditional Commitments for all MFH Production & Preservation Programs until further notice.” The next day, a second email rescinded the first. It stated that “USDA is implementing an internal pre-obligation review process; however, Multifamily Housing programs are not paused on executing obligations or issuing Conditional Commitments. Multifamily Housing programs are operating normally for FY2025.”

Effective dates extended again for parts of HOME regulation

After an initial delay announced in February, HUD has further postponed the effective dates for some provisions of the HOME final rule. HUD will publish a separate notice requesting comments on the delayed provisions. The provisions that are not delayed are effective as of April 20, 2025, with a final compliance date of April 20, 2026.

White House orders faster repeal of regulations

A presidential memorandum, building on a February executive order, instructs federal agencies to repeal regulations without public notice or comment periods if they conflict with recent Supreme Court decisions.

OMB seeks deregulation ideas

OMB requests suggestions for deregulation relating to “any and all regulations currently in effect.” Commenters should identify rules to be rescinded and provide detailed reasons for their rescission. Comments are due May 12.

USDA announces senior staff appointments

Some recent appointments are potentially relevant for rural housing. Kelsey Barnes is now Senior Advisor to the Secretary for Rural Development, Biofuels, and Research, Education, and Economics. David Matthews serves as the Director of State Operations for Rural Development. T.W. Shannon has become the Senior Advisor to the Secretary for Rural Prosperity.

PUBLICATIONS AND MEDIA

HAC posts online guide for flood survivors

To assist our rural partners and communities affected by recent flooding, HAC’s Ohio River Valley and Mississippi Valley Floods Rural Response Guide provides information for people in the disaster area. Other disaster resources from HAC include Rural Resilience in the Face of Disaster and a Disaster Response for Rural Communities Guide.

Proposal to develop “Freedom Cities” on federal land may be gaining momentum

A proposal from the American Enterprise Institute calls for building up to 3 million homes on federally owned land in “Freedom Cities” – deregulated zones designed to address housing affordability and land scarcity. A Bloomberg Law article notes that, rooted in a concept floated by President Trump, the plan has gained new attention amid rising housing costs in the West. Supporters see potential in states like Nevada and Colorado, while critics raise concerns about environmental oversight and local governance.

HAC

Need capital for your affordable housing project?

HAC’s loan fund provides low interest rate loans to support single- and multifamily affordable housing projects for low-income rural residents throughout the U.S. and territories. Capital is available for all types of affordable and mixed-income housing projects, including preservation, new development, farmworker, senior and veteran housing. HAC loan funds can be used for pre-development, site acquisition, site development, construction/rehabilitation and permanent financing. Contact HAC’s loan fund staff at hacloanfund@ruralhome.org, 202-842-8600.

Please note: HAC is not able to offer loans to individuals or families. Borrowers must be nonprofit or for-profit organizations or government entities (including Tribes).

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