HUD workforce reduced by 29 percent in 2025, GAO report finds

The Department of Housing and Urban Development reduced its workforce by 29 percent in 2025, according to the Government Accountability Office. HUD largely achieved workforce reductions through deferred resignation programs. Over half the employees who separated had at least 10 years of service at HUD, including 41 percent with more than 20 years of service.

About half of HUD's 68 active grant programs made new awards in fiscal year 2025, the agency reported. The median value of those awards was higher than in previous years. HUD also terminated about 21 percent of its active contracts in 2025, valued at about $367 million. Most terminated contracts involved professional or IT services.

Representatives of 20 stakeholder organizations GAO interviewed reported confusion, delays, and operational disruptions following HUD's changes. Nearly all said that experienced points of contact had left, making it harder to navigate HUD programs. Fair housing stakeholders reported reducing services or staffing during monthslong funding gaps. Stakeholders also reported delays with physical inspections of HUD-assisted properties.

HUD did not publish notice of any reorganization plans that led to field office closures in 2025, the agency said. In 2026 it announced plans to consolidate one field office into a nearby regional office.

Since January 2025, HUD has reported launching initiatives aimed at increasing efficiency and streamlining operations. HUD reported developing a unified grants system to standardize grant administration and a project voucher initiative to automate aspects of rental assistance processing. HUD did not respond to GAO's requests to discuss these initiatives or provide supporting documentation.

The Government Accountability Office published the report on Wednesday 14 October 2026. HUD did not respond to GAO's requests for information throughout the audit.